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Switzerland vs Paraguay

Crypto regulation comparison

← Back to map | Switzerland | Paraguay
Switzerland

Switzerland

Paraguay

Paraguay

Legal
Legal

Switzerland is one of the world's most crypto-friendly jurisdictions. The Canton of Zug is known as 'Crypto Valley' and hosts the Ethereum Foundation and hundreds of blockchain companies. FINMA provides clear regulatory guidance, and the DLT Act (2021) created a legal framework for tokenized securities and crypto exchanges. Individual investors pay no capital gains tax on crypto, though it is included in the cantonal wealth tax base. Professional traders may be subject to income tax.

Paraguay has no specific comprehensive crypto law. President Abdo vetoed a crypto regulation bill in 2022. The BCP does not recognize crypto as legal tender. VASPs must register with SEPRELAD for AML compliance since 2020. Paraguay is a significant crypto mining hub due to cheap hydroelectric power from the Itaipu Dam, though bills to restrict mining due to energy theft have been debated.

Tax Type Wealth
Tax Type Income
Tax Rate 0% capital gains (individuals); wealth tax varies by canton
Tax Rate 8-10%
Exchanges Yes Yes
Exchanges Yes Yes
Mining Yes Yes
Mining Yes Yes
Regulator FINMA (Swiss Financial Market Supervisory Authority)
Regulator BCP (Banco Central del Paraguay), SEPRELAD
Stablecoin Rules Regulated under FINMA framework; fiat-pegged stablecoin issuers must hold a banking or fintech licence (reserves treated as public deposits), or a payment system licence under FMIA if structured as financial market infrastructure
Stablecoin Rules No specific stablecoin regulation
Key Points
  • No capital gains tax on crypto for individual investors (private wealth management)
  • Crypto included in cantonal wealth tax base (rates vary by canton, typically 0.1-1%)
  • Professional/frequent traders may be classified as self-employed and taxed on income
  • FINMA regulates crypto under existing financial market laws and the 2021 DLT Act
  • DLT Act (2021) introduced DLT trading facility license and legal framework for tokenized assets
Key Points
  • No comprehensive crypto law enacted; 2022 bill was vetoed by President Abdo
  • Major crypto mining hub thanks to cheap hydroelectric power (Itaipu Dam)
  • VASPs must register with SEPRELAD (anti-money laundering secretariat)
  • Income from crypto activities subject to 8-10% tax rates
  • ANDE (national electricity authority) regulates power consumption for mining operations
Sources
Sources