Paraguay
Retail_Trading_Status
- Analysis ID
- #757
- Version
- Latest
- Created
- 2025-12-12 04:59
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- 78a3caa0...
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Executive Summary
Retail cryptocurrency trading is legal in Paraguay but remains largely unregulated following the presidential veto of a comprehensive 'Crypto Law' in 2022. While there is no prudential licensing regime for exchanges, the Secretariat for the Prevention of Money or Asset Laundering (SEPRELAD) actively enforces AML/CFT rules, requiring Virtual Asset Service Providers (VASPs) to register in its SIRO system. The Central Bank of Paraguay (BCP) has issued warnings that crypto is not legal tender and is not backed by the state, while recent legislative efforts have focused on monitoring and tariffing the energy-intensive crypto mining sector rather than financial regulation.
Key Pillars
SEPRELAD (Secretaría de Prevención de Lavado de Dinero o Bienes) - Primary AML/CFT authority requiring VASP registration.
Banco Central del Paraguay (BCP) - Issues risk warnings; confirms crypto is not legal tender.
ANDE (Administración Nacional de Electricidad) - Regulates power tariffs for crypto mining operations.
Ministry of Industry and Commerce (MIC) - Tasked with gathering data on mining entities (per recent resolutions).
Landmark Laws
SEPRELAD Resolution No. 314/2021 (Resolución N° 314/2021) - Enacted: 2021-11-20
- Establishes the AML/CFT regulatory framework for Virtual Asset Service Providers (VASPs), designating them as 'Obligated Subjects' required to implement compliance programs.
- Source
SEPRELAD Resolution No. 88/2023 (Resolución N° 88/2023) - Enacted: 2023-03-24
- Approves procedures and requirements for VASPs to register in the Integrated Operations Reporting System (SIRO).
- Source
Decree No. 7692/2022 (Veto of Crypto Law) (Decreto N° 7692) - Enacted: 2022-08-29
- Presidential veto of the bill 'Regulating the Industry and Commercialization of Virtual Assets', citing high energy consumption and low employment benefits; the veto was accepted by Congress, killing the bill.
ANDE Resolution No. 46984/2022 (Resolución N° 46984) - Enacted: 2022-10-04
- Established a specific electricity tariff group (Group Z) for intensive data usage activities, including crypto mining.
- Source
Considerations
No Investor Protection: The BCP explicitly states that crypto assets are not authorized or guaranteed by the state, leaving investors with no recourse in case of fraud or platform failure.
Mining Scrutiny: While trading is open, mining is heavily scrutinized; illegal connections face raids, and legal miners pay higher industrial electricity tariffs.
Banking Access: Banks may restrict or close accounts associated with crypto trading due to BCP risk warnings, despite the lack of a formal ban.
Taxation: General tax laws apply (VAT/IRE) as there is no specific crypto tax regime.
Notes
The analysis date includes recent developments from December 2025 (as reflected in search results), indicating that the government is currently prioritizing data collection on miners over banning them. The status is 'Allowed-UnRegulated' because the SEPRELAD registration is purely for AML and does not constitute a license to operate a financial exchange with prudential oversight.
Remaining Uncertainties
- Will the 'Mining Ban' bill be revived if energy shortages worsen?
- Does the government plan to re-introduce a comprehensive financial regulatory bill for exchanges (VASP law) in 2026?
- How strictly are banks enforcing de-risking policies against registered VASPs?
Detailed Explanation
Detailed Explanation
Retail cryptocurrency trading is legal and allowed in Paraguay but remains largely unregulated from a prudential financial oversight perspective. The primary regulatory framework is focused on anti-money laundering and counter-terrorist financing (AML/CFT) enforced by the Secretariat for the Prevention of Money or Asset Laundering (SEPRELAD). Under SEPRELAD Resolution No. 314/2021, enacted on November 20, 2021, Virtual Asset Service Providers (VASPs) are designated as 'Obligated Subjects' and must implement compliance programs. This was followed by SEPRELAD Resolution No. 88/2023 on March 24, 2023, which approved specific procedures for VASPs to register in the Integrated Operations Reporting System (SIRO). This registration is mandatory but does not constitute a financial license or provide investor protection. The Central Bank of Paraguay (BCP) has issued consistent warnings that crypto assets are not legal tender and are not authorized or backed by the state, leaving investors with no formal recourse in cases of fraud or platform failure. The comprehensive 'Crypto Law' bill, which aimed to establish a broader regulatory regime, was vetoed by the president via Decree No. 7692/2022 on August 29, 2022, and the veto was accepted by Congress, effectively killing the legislation. The government's regulatory focus has since shifted toward the energy-intensive mining sector. The National Electricity Administration (ANDE) regulates this sector through measures like Resolution No. 46984/2022, enacted on October 4, 2022, which created a specific, higher electricity tariff group (Group Z) for data-intensive activities including crypto mining. Furthermore, the Ministry of Industry and Commerce (MIC) has been tasked with gathering data on mining entities per recent resolutions, indicating a move towards monitoring rather than an outright ban. For general trading and exchange activities, there is no prudential licensing regime, and while banking access is not formally prohibited, banks may restrict or close accounts associated with crypto due to BCP risk warnings. General tax laws apply as there is no specific crypto tax framework.
Summary Points
I. Regulatory Status
* Retail cryptocurrency trading is Allowed-Unregulated.
* It is legal but lacks a comprehensive prudential licensing framework for exchanges.
* The primary existing regulation is for AML/CFT compliance enforced by SEPRELAD.
* A comprehensive 'Crypto Law' was vetoed in 2022 and is not in force.
II. Key Regulatory Bodies
* SEPRELAD (Secretaría de Prevención de Lavado de Dinero o Bienes): The primary AML/CFT authority; requires VASP registration in its SIRO system.
* Banco Central del Paraguay (BCP): Issues public risk warnings; clarifies that crypto is not legal tender and is not state-backed.
* ANDE (Administración Nacional de Electricidad): Regulates power supply and tariffs for crypto mining operations.
* Ministry of Industry and Commerce (MIC): Tasked with data collection on mining entities.
III. Important Legislation
* SEPRELAD Resolution No. 314/2021 (2021-11-20): Establishes the AML/CFT framework for VASPs, designating them as 'Obligated Subjects'.
* SEPRELAD Resolution No. 88/2023 (2023-03-24): Approves procedures for VASPs to register in the SIRO system.
* Decree No. 7692/2022 (2022-08-29): Presidential veto of the 'Crypto Law' bill, which was subsequently accepted by Congress.
* ANDE Resolution No. 46984/2022 (2022-10-04): Established a specific electricity tariff group (Group Z) for intensive data usage, including crypto mining.
IV. Compliance Requirements
* VASPs must register with SEPRELAD in the SIRO system per Resolution No. 88/2023.
* VASPs must implement AML/CFT compliance programs as 'Obligated Subjects' under Resolution No. 314/2021.
* Crypto mining operations must comply with ANDE's industrial electricity tariffs, specifically the Group Z tariff.
* General tax obligations (e.g., VAT, IRE) apply as there is no specific crypto tax law.
V. Notable Restrictions or Limitations
* No Investor Protection: The BCP explicitly states crypto assets are not authorized or guaranteed by the state.
* Banking Access: Banks may restrict or close accounts associated with crypto activities based on BCP risk warnings.
* Mining Scrutiny: Illegal mining connections face enforcement actions; legal miners pay higher industrial power rates.
* No Legal Tender Status: Cryptocurrencies are not recognized as legal tender in Paraguay.
VI. Recent Developments or Notes
* As of late 2025, government efforts are focused on monitoring and data collection on the mining sector rather than implementing a financial ban.
* The regulatory status is 'Allowed-Unregulated' because SEPRELAD registration is for AML purposes only and does not constitute a prudential financial license.
* The veto of the 2022 Crypto Law has left the trading sector in a legal but largely unregulated state concerning consumer protection and market conduct.
Full Analysis Report
Full Analysis Report
Paraguay's regulatory environment for cryptocurrencies is characterized by a 'permitted but unregulated' status for retail trading, juxtaposed with strict oversight of the industrial mining sector. The country came close to establishing a comprehensive regulatory framework with the passage of a 'Crypto Law' by Congress in 2022, which would have appointed the CNV (National Securities Commission) as the regulator for exchanges. However, President Mario Abdo Benítez vetoed the bill in August 2022 (Decree No. 7692), arguing that crypto mining consumed excessive subsidized energy while generating little employment. The Chamber of Deputies accepted this veto in late 2022, leaving the sector without a specific financial licensing regime.
Despite the lack of a prudential regulator, the sector is not entirely a 'wild west.' The Secretariat for the Prevention of Money or Asset Laundering (SEPRELAD) has stepped in to fill the compliance gap. Under Resolution No. 314/2021, all entities facilitating the exchange, transfer, or custody of virtual assets are classified as 'Obligated Subjects.' They must register with SEPRELAD's SIRO system (per Resolution No. 88/2023), conduct KYC/CDD, and report suspicious activities. This creates a layer of AML compliance for local exchanges, even though they do not hold a financial license from the Central Bank.
The Central Bank of Paraguay (BCP) maintains a conservative stance. It has issued multiple circulars warning that cryptocurrencies are not legal tender, are not backed by the Central Bank, and do not enjoy state guarantees. The BCP emphasizes that citizens trade at their own risk. This position often leads to friction with the traditional banking sector, which may de-risk by refusing service to crypto companies, although there is no explicit law prohibiting banks from processing these transactions.
The most active regulatory front remains crypto mining, driven by Paraguay's surplus hydroelectric energy from the Itaipu dam. While a bill to temporarily ban mining was proposed in April 2024 due to grid instability and power theft, it was halted in favor of a strategy to sell excess energy to legal miners. As of December 2025, the Chamber of Deputies has passed resolutions requiring the Ministry of Industry and ANDE to create detailed registries of mining operations to improve transparency and curb illegal power tapping. Thus, while retail trading remains 'Allowed-UnRegulated,' the ecosystem is subject to increasing state monitoring.
Paraguay's regulatory environment for cryptocurrencies is characterized by a 'permitted but unregulated' status for retail trading, juxtaposed with strict oversight of the industrial mining sector. The country came close to establishing a comprehensive regulatory framework with the passage of a 'Crypto Law' by Congress in 2022, which would have appointed the CNV (National Securities Commission) as the regulator for exchanges. However, President Mario Abdo Benítez vetoed the bill in August 2022 (Decree No. 7692), arguing that crypto mining consumed excessive subsidized energy while generating little employment. The Chamber of Deputies accepted this veto in late 2022, leaving the sector without a specific financial licensing regime. Despite the lack of a prudential regulator, the sector is not entirely a 'wild west.' The Secretariat for the Prevention of Money or Asset Laundering (SEPRELAD) has stepped in to fill the compliance gap. Under Resolution No. 314/2021, all entities facilitating the exchange, transfer, or custody of virtual assets are classified as 'Obligated Subjects.' They must register with SEPRELAD's SIRO system (per Resolution No. 88/2023), conduct KYC/CDD, and report suspicious activities. This creates a layer of AML compliance for local exchanges, even though they do not hold a financial license from the Central Bank. The Central Bank of Paraguay (BCP) maintains a conservative stance. It has issued multiple circulars warning that cryptocurrencies are not legal tender, are not backed by the Central Bank, and do not enjoy state guarantees. The BCP emphasizes that citizens trade at their own risk. This position often leads to friction with the traditional banking sector, which may de-risk by refusing service to crypto companies, although there is no explicit law prohibiting banks from processing these transactions. The most active regulatory front remains crypto mining, driven by Paraguay's surplus hydroelectric energy from the Itaipu dam. While a bill to temporarily ban mining was proposed in April 2024 due to grid instability and power theft, it was halted in favor of a strategy to sell excess energy to legal miners. As of December 2025, the Chamber of Deputies has passed resolutions requiring the Ministry of Industry and ANDE to create detailed registries of mining operations to improve transparency and curb illegal power tapping. Thus, while retail trading remains 'Allowed-UnRegulated,' the ecosystem is subject to increasing state monitoring.
Source Evidence
Primary and secondary sources cited in this analysis
"El bitcoin y otras criptomonedas similares no son consideradas como billetes o monedas, no tienen fuerza cancelatoria obligatoria en el Paraguay y, por consiguiente, no gozan de la garantía del Estado."
"Se aprueba el reglamento... para las Personas Físicas y Jurídicas que realizan actividades asociadas a los Activos Virtuales."
"The executive branch vetoed the bill in its entirety... citing high electricity consumption."
"Paraguay's House of Representatives approved two resolutions on December 4, aimed at obtaining information on cryptocurrency mining activities."
"Paraguayan lawmakers this week rejected the president's veto... [However, the veto was later upheld by the lower house]."
Web Sources (14)
Sources discovered via web search grounding
Search queries used (6)
- Paraguay crypto law veto status
- Paraguay crypto mining ban bill 2024
- Paraguay cryptocurrency regulation status 2024 2025
- CNV Paraguay crypto regulation
- SEPRELAD Paraguay virtual assets regulation
- Banco Central del Paraguay crypto warning 2024
https://www.vouga.com.py/en/avances-en-la-regulacion-fintech-en-el-paraguay-criptomonedas-y-cripto-activos/
https://www.waivio.com/@justmythoughts/cryptocurrency-regulation-in-paraguay
https://cryptonews.com/news/paraguay-proposes-bitcoin-mining-ban-citing-power-issues/
https://iclg.com/news/20435-government-looks-to-call-a-halt-to-crypto-mining
https://metlabs.io/en/blockchain-regulation-paraguay/
https://www.vixio.com/insights/pc-paraguay-path-adopt-crypto-law
https://coinfomania.com/cryptocurrency-regulation-in-paraguay/
https://www.binance.com/en/square/post/12-05-2025-paraguay-s-house-of-representatives-approves-resolutions-to-regulate-cryptocurrency-mining-33305511159178
https://www.vouga.com.py/wp-content/uploads/2023/12/VOUGA_Fintech__4_Ingles-minimo.pdf
https://news.bitcoin.com/paraguayan-lawmakers-introduce-bill-to-temporarily-pull-the-plug-on-bitcoin-mining-operations/
https://www.thestreet.com/crypto/news/paraguay-vetoes-crypto-regulation-bill
https://www.theblock.co/post/149240/paraguays-crypto-industry-regulation-advances-despite-pushback-from-central-bank
https://www.bitget.com/amp/news/detail/12560603962109
https://decrypt.co/110989/paraguay-senators-reject-president-bitcoin-mining-law-veto