Cryptocurrency activities in Paraguay are legal with some regulatory framework in place, including a partially vetoed Crypto mining and trading law from 2022.
| Status | Legal |
| Risk Score | 25/100 (Low Risk) |
| Region | south america |
| Currency | PYG |
| Capital Gains (Personal) | 10% on income from capital investments |
| Capital Gains (Corporate) | 10% corporate income tax |
| VAT on Crypto | No |
| Staking Tax | No specific guidance |
| Airdrop Tax | No specific guidance |
Paraguay has low tax rates. The 10% income tax rate is attractive for crypto businesses. Cheap electricity (from Itaipú dam) makes mining operations cost-effective.
| Required | No |
| Regulator | SEPRELAD / BCP / SIV (formerly CNV) |
| Framework | No comprehensive crypto law enacted. Piecemeal framework: SEPRELAD Resolution 08/2020 and Regulation 314/2021 (VASP AML registration); Law 7572/2025 (Securities and Products Market - covers tokenized assets/DLT); DNIT Resolution 47/26 (crypto transaction reporting, 2026). The 2022 crypto bill was fully vetoed by the Executive and not overridden. |
| Ease | easy |
The partially vetoed 2022 law addressed crypto mining regulation. Paraguay's cheap electricity attracts mining operations. ANDE (electricity authority) has created special tariffs for crypto miners.
ANDE has cracked down on illegal mining operations stealing electricity.
| KYC Required | Yes |
| Travel Rule | No |
| FATF Member | No |
| FATF Status | partially_compliant |
| FATF Body | GAFILAT |
| Suspicious-Activity Reporting | Yes |
Status: Unclear
No DeFi regulation.
Status: no_rules
No framework.
Status: no_rules
No regulation.
| Legal | Yes |
| Electricity Cost | $0.037/kWh |
| Renewable Energy | 99% |
| Infrastructure | fair |
Paraguay has very low electricity costs due to abundant hydroelectric power, making it attractive for crypto mining. Infrastructure is developing but still limited compared to major hubs.
| Stability | moderate |
| Sanctions | No |
| Corruption Index | 28/100 |
| Banking Access | moderate |
Risk Factors
Paraguay is moderately stable. Not subject to country-level international sanctions. Former president Cartes delisted from OFAC in Oct 2025, reducing headline sanctions risk. Corruption remains a structural concern (TI CPI ~28/100). GAFILAT member, not on FATF grey list.
Cryptocurrency activities in Paraguay are legal with some regulatory framework in place, including a partially vetoed Crypto mining and trading law from 2022.
Paraguay is classified by FATF as: partially_compliant.
KYC is mandatory for crypto businesses.
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Explore IT Services →Last reviewed: 2026-06-01 · Data source: Soken Crypto Legal Map
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