Paraguay Adopts Stricter Crypto Oversight, Mandates Detailed Transaction On Bitcoin Reporting

"The resolution requires platforms and administrators to submit detailed data, including wallet addresses, blockchain networks, and transaction hashes. Obligated parties must also report the date and time of each transaction, the amount and USD value, fees paid, and counterparty information, according to local reporting."

"The measure covers buying, selling, trading between cryptocurrencies, mining, staking, yield farming, airdrops, lending income, payments, and transfers between personal wallets."

"Officials describe the initiative as a step toward integrating cryptocurrencies into the national tax system. 'Proper identification and monitoring will strengthen oversight and compliance,' the DNIT stated. The regulation does not create new taxes but increases transparency for fiscal authorities."

"The resolution aligns with recommendations from the Financial Action Task Force (FATF). Since 2019, FATF has urged countries to enforce strict reporting requirements on virtual assets to prevent money laundering and terrorism financing."

Paraguay's National Directorate of Tax Revenue (DNIT) issued General Resolution No. 47/26, establishing comprehensive reporting requirements for cryptocurrency transactions. The regulation mandates that residents and entities disclose transactions exceeding $5,000 per year, covering buying, selling, trading, mining, staking, yield farming, airdrops, lending income, and transfers. Platforms and administrators must submit detailed data including wallet addresses, blockchain networks, transaction hashes, timestamps, USD values, fees, and counterparty information. The measure does not create new taxes but increases transparency for fiscal authorities. The regulation aligns with Financial Action Task Force recommendations to prevent money laundering and terrorism financing. Paraguay, as a GAFILAT member, incorporated these guidelines to improve anti-money laundering enforcement and reduce international scrutiny.

Read at Bitcoin Magazine