Draft cryptocurrency bill introduced in the Guatemalan Parliament

The draft of the project, introduced to the Guatemala Conference by Representative Shirley Rivera, has established several rules aimed at placing Guatemala at the forefront of cryptocurrency regulations. The bill provides tax exemptions for personal transactions and regulates the voluntary use of cryptocurrencies for payments.

Proposed before the Guatemalan Parliament to regulate cryptocurrency payments

More and more, the country is rushing to establish a clear cryptocurrency regulatory framework to ensure that it is not left behind in the region. Rep. Shirley Rivera recently introduced a cryptocurrency bill in Guatemalan Parliament, which seeks to clarify the rules citizens and businesses must follow to utilize these tools.

The draft, which includes 15 articles, sees crypto assets as a tool to increase financial inclusion and calls for innovation and promotion of national use. One article suggests that cryptocurrencies can still be used voluntarily in transactions, even if they are not recognized as fiat currency.

“Cryptocurrencies are not legal fiat currencies, but may be used for legal transactions in the public and private spheres,” he emphasizes, recognizing the use cases of cryptocurrency payments.

Additionally, this document must be registered with the institution to establish that both the wallet and the crypto exchange are under the jurisdiction of the Bank Supervision (SIB) and to legally operate.

Cryptocurrency transactions are exempt from paying capital gains taxes as long as they are used to pay for goods and services that are priced both as crypto and as savings vehicles. Commercial transactions are taxed.

The introduction of this project shows the accelerated emergence of cryptography in Latin American countries as traditional financial institutions use crypto to play several roles behind the scenes. For example, Banco Industrial, Guatemala’s largest bank, recently introduced crypto-based services to promote transfers through mobile apps.

In January, the Central Bank of Guatemala revealed that under current regulations, cryptocurrency assets are not considered domestic money, highlighting the statutory bid position of Quetzal in Guatemala. At the time, central bank chairman Alvaro González Ricci emphasized that cryptocurrencies are considered investment assets.

Read more: Guatemala’s largest banks rely on crypto for remittances