Analysis of the Implications and Projections of Cryptocurrencies in the framework of the Tax Provisions in force in Paraguay for the year 2022

Abstract

Most of the legal systems in the world, not to say that all of them, to a greater or lesser extent, show a necessary attachment to the principle of territoriality, since they adhere to a traditional conception of the State, where there is a Political
Power that forces a Population within physical limits called Territory and this became the first obstacle to be overcome
by universal legislation, being that it has become a gigantic dam in the flow of normal legal evolution together with
social dynamism. The general objective is to analyze the implications and projections of Cryptoactives or Cryptocurrencies within the framework of the tax provisions in force in Paraguay for 2022. The topic, being new for Paraguay,
but at the same time popularized in the different aspects, Having production, marketing and/or investment lines requires parameters that are not yet defined in the country’s tax regulations. The author concludes that it is important
to take care of the details when justifying regulatory efforts. It is essential to avoid (or at least , if possible) introduce sterile or outdated regulations. In this line of thought, the doctrine maintains that “if the law is to establish liability or provide certainty to the parties to a transaction, the programmed reactions of cryptocurrencies and non-intermediaries can cause many legal entities to seek compliance or regulate behavior of intermediaries” There is a complete paradigm shift that indicates that one must be prepared for the inevitable future of digital exchanges. The rise of cryptoassets is challenging the traditional notion of law that goes beyond their use or regulatory difficulties. Although stability and maturity in the use of cryptoassets and especially cryptocurrencies as a means of payment is still far away, notable developments are observed in this field and the growing interest of companies in investing in virtual assets.