Latam Insights: Paraguay’s Bitcoin Legal Tender Hack, Brazil’s Crypto Tax Update

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Welcome, dear reader, to the world of Latam Insights, where the most relevant crypto news from Latin America unfolds. This week, we have a tale of a hack in Paraguay, a tax update in Brazil, and a curious decline in crypto remittances in El Salvador. 🌎💰

No One Fell for It: Paraguay’s Bitcoin Legal Tender Announcement Was a Zero-Sum Hack

Paraguay, a land of mystery and intrigue, found itself at the center of the crypto universe on a fateful Monday. President Santiago Peña, with a flourish of digital pen, or so it seemed, announced on social media that Paraguay had embraced bitcoin as legal tender, backed by a modest reserve of $5 million. 🤑

Peña’s post, now vanished like a ghost in the night, claimed he had signed a law “rooted in an unbreakable compromise with the financial innovation, economic sovereignty, and inclusive growth.” One can only imagine the whispers in the halls of power, the raised eyebrows, and the chuckles of disbelief. 🤔

Adding to the peculiar tale, the announcement mentioned a series of bonds to be issued by the Paraguayan Treasury, inviting the world to partake in this grand experiment by sending funds to a bitcoin address. A curious invitation indeed, one that left many scratching their heads. 🤷‍♂️

Brazilian Authorities Terminate Exemptions, Aims to Tax Crypto Held in Self Custody

The Brazilian government, ever the guardian of fiscal order, has unveiled new tax rules for cryptocurrencies, both within its borders and beyond. A Provisional Measure, published on June 11, has swept away the previous tax regime, which offered a lower threshold for paying taxes on digital assets, and introduced a flat fee for all income derived from holding or trading these assets. 📜

Provisional Measure 1,303 establishes that all gains from crypto will now be taxed at a flat rate of 17.5% as income tax, without exception. Gone are the days of tiered taxation, where the wealthy could enjoy lower rates. Now, all are equal before the taxman. 🤑

The measure is clear: “all income, including net gains, obtained from transactions with virtual assets, including financial arrangements with virtual assets that are the digital representation of value negotiated or transferred by electronic means and used for payment or investment purposes” are subject to this new regime. A bold move, one that will surely stir the pot. 🍲

Crypto Remittances Fell Nearly 45% in El Salvador

El Salvador, the land of volcanoes and crypto dreams, has seen a curious decline in the volume of remittances processed through crypto means. The central bank’s numbers reveal a 44.5% drop during Q1 2025 compared to the first four months of 2024. Salvadorans received a mere $16 million in crypto during this period, a stark contrast to the $28.83 million of the previous year. 📉

The decline in crypto remittances has become a trend, a testament to the enduring preference for traditional financial institutions, despite the fees they impose. It seems that the old ways still hold sway in the hearts of the Salvadoran people. 🏦

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2025-06-15 18:27