Paraguay plans to enact new cryptocurrency laws

Paraguay is preparing to introduce regulation of the cryptocurrency industry from next year.

Last weekHead of the Anti-Money Laundering OfficeLatin America (SEPRELAD) announced a nationwide crypto audit. Each of Paraguay's digital asset service providers (VASPs) has been ordered to provide the regulator with access to transaction information. 

Mass audit of the crypto industry in the country,initiated by the FATF leadership in June, will help the Paraguayan government assess the domestic cryptocurrency industry and implement appropriate regulations as early as the first half of 2020.

Audit data will help assess the extent ofthe spread of digital assets in the country, and will also become the main one for “developing regulatory acts and reducing the risks of illegal use of cryptocurrencies”.

Now crypto miners, over-the-counter (OTC) tradingsites, exchanges and other crypto market players will have to register with the regulator and exercise basic supervision over the actions of their clients – use counter-terrorist financing (CFT) protocols and AML/KYC procedures.