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Gresham International heralded as one of the world’s best crypto law firms, made an announcement this week. They explained that Paraguay’s government accepted its proposal to help develop the country’s crypto laws. The company will assist the government in developing a new draft of Paraguay’s crypto legislation.
Rapid Short and Long Term Success
Cal Evans, the Managing Associate for Gresham International, gave a little more clarity about the situation. He explained that Gresham gave the proposal after Paraguay’s government requested information in the deployment of crypto and blockchain opportunities. The government was focusing in particular on laws it could rapidly deploy and will work in the long and short term. The laws must have a maximum impact and must be relatively quick to implement.
Gresham International will be working with Paraguay’s domestic government to assist them in creating new laws. Both parties are going to develop these laws with the intent of making them beneficial for both the country and the crypto community. Gresham International has already done this in other jurisdictions. An excellent example of this would be Labuan and its newly developed Security Token Laws.
Aspiring Regional Leader
Evens explains Paraguay’s seriousness when it comes to introducing new crypto laws. He stated that the country wants to become the regional leader in crypto laws. With this in mind, Paraguay turned to Gresham to help its legislative development.
Evans explained that he gained the understanding that Paraguay sees crypto as a long term opportunity. This opportunity could help develop business in its country and benefit its people and foreign companies with holdings inside it. Paraguay has made it clear that it has no intention of developing a centralized cryptocurrency at this time.
One of the main contributing factors to this new need for crypto legislation has more to do with the countries around Paraguay. Many groups move within the country to make use of its relatively cheap and stable power grid. Within, they set up a crypto mining operation that uses up the country’s affordable power grid. After they finished mining the crypto to a satisfactory level, the group quickly break operation and move back within their home country.
As you could imagine, Paraguay isn’t too pleased about this. They consider the crypto miners thieves for stealing the country’s power to earn revenue without paying taxes on said revenue. Paraguay plans on taking income from these parties so everyone can benefit from the act. In less related reasons, China and Paraguay are allies. Should Paraguay manage to build a productive crypto ecosystem, it hopes that China would see this in a positive light. If China believes that both it and Paraguay are with the same intents, it will improve their relationship.