Paraguay vs Timor-Leste
Crypto regulation comparison
Paraguay
Timor-Leste
Legal
No Regulation
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.
Timor-Leste has no specific cryptocurrency regulation. Uses the US dollar as its official currency.
Tax Type
Income
Tax Type
None
Tax Rate
8-10%
Tax Rate
N/A
Exchanges
Yes
Exchanges
Yes
Mining
Yes
Mining
Yes
Regulator
BCP (Banco Central del Paraguay), SEPRELAD
Regulator
Banco Central de Timor-Leste
Stablecoin Rules
No specific stablecoin regulation
Stablecoin Rules
No stablecoin regulation
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
Key Points
- No specific cryptocurrency legislation
- Uses the US dollar as official currency
- Central bank has not addressed crypto regulation
- Very limited financial infrastructure
- Minimal crypto adoption