Paraguay’s Bitcoin (BTC) industry went from optimistic to defensive in just a few days. The impetus was General Resolution No. 47/26, officially published by the Department of National Tax and Revenue (DNIT) on March 10, which requires detailed reporting of all operations using digital assets for the fiscal year 2026.
That’s the problem This solution requires compliance that is technically impossible “This sends a devastating signal to the international market,” Bruno Vacotti Ramos, president of the Paraguayan Fintech Chamber (CPF), said in an analysis published in La Tribuna newspaper on March 22.
Vacotti acknowledges that searching for tax information is a legitimate state prerogative, but argues that Paraguay has erected three “walls” that regulations can breach in the face of the nature of cryptocurrency networks.
1.- Ghost of P2P Counterparty
Friction begins with transactions between individuals. DNIT requires that the other party of each operation be identified by first name, last name, and document, ignoring that in pure P2P transfers there are only hashes and pseudonymous addresses.
For Vacotti, This requirement will ultimately “criminalize basic uses of Bitcoin” By requiring traceability that currency architectures do not natively allow for ordinary users.
2.- Notify immutable code
The second contradiction occurs when trying to anthropomorphize software. The resolution calls for identifying responsible parties for platforms and extends this obligation to decentralized finance (DeFi) protocols and smart contracts.
However, smart contracts are self-executing code that has no legal status or legal representation. By requesting data from non-existent controllers, DNITs create legally impossible problems. In other words, you’re trying to interact with algorithms as if you were a traditional commercial entity.
3.-Double evaluation
Finally, the system imposes accounting burdens that threaten to drive out small savers. Markets that operate 24/7 require a guarantee to declare value at the exact time of each trade. It lacks an official API that connects the cryptocurrency network to Marangatu, the official digital tax management platform of Paraguay’s DNIT.
Operating costs of this accounting $5,000 annual threshold is a barrier to entryParaguay lags behind the flexibility of markets such as Brazil and Argentina.
This clash of visions is putting at risk the competitiveness of a country that has attracted $1.2 billion in investment over the past four years.
Currently, only three digital mining companies inject more than $90 million a year into the National Electricity Authority (ANDE), but that trend could be undermined if the regulations are seen as a “shaming,” as economic analyst Augusto Fabbrini suggests in an article published in Plus Magazine.
Despite unrest within trade unions and the lack of a prior economic impact analysis, DNIT has maintained the validity of its standards, whose first submission deadline expires in March 2027.
now they stand up Questions about whether Paraguay can adjust collection needs Will paper’s rigidity stifle the dynamism of digital markets, preserving the surplus energy that has made it attractive for Bitcoin mining and foreign investment, or conversely?
(Tag translation) Bitcoin (BTC)
