Representative Shirley Rivera has introduced a groundbreaking bill to the Guatemalan Congress, aimed at positioning Guatemala as a leader in cryptocurrency regulation. The draft project outlines various rules that will govern the use of cryptocurrency in the country, including tax exemptions for personal transactions and regulations for voluntary crypto payments.
Guatemala Takes a Step Towards Regulating Cryptocurrency Payments
As the global interest in cryptocurrency continues to grow, countries around the world are working to establish clear regulatory frameworks. Representative Shirley Rivera’s recent proposal in the Guatemalan Congress is a significant step towards creating a structured approach to cryptocurrency use in the country.
The bill, comprised of 15 articles, recognizes cryptocurrency as a tool for enhancing financial inclusion and encourages the state to embrace innovation in this area. One key provision of the bill allows for the voluntary use of cryptocurrency in transactions, even if it is not officially recognized as legal tender.
While cryptocurrencies will not hold the status of legal tender, they can still be used for legitimate transactions in both public and private sectors, according to the bill.
Additionally, the document stipulates that both cryptocurrency wallets and exchanges will fall under the oversight of the Superintendence of Banks (SIB) and must register with the institution to operate lawfully.
Under the proposed regulations, capital gains taxes will be waived for cryptocurrency transactions used to pay for goods or services that can be priced in crypto, or as a means of savings. However, commercial transactions involving cryptocurrency will be subject to taxation.
The introduction of this bill signals a shift towards greater acceptance and adoption of cryptocurrency in Guatemala. Traditional financial institutions in the country are also beginning to explore the use of crypto for various purposes. For instance, Banco Industrial, Guatemala’s largest bank, recently launched a crypto-based service to facilitate remittances through its mobile app.
Earlier this year, the Central Bank of Guatemala clarified that cryptocurrencies are not considered legal tender in the country, with the Guatemalan quetzal retaining its status as the official currency. Central Bank President Álvaro González Ricci emphasized that cryptocurrencies are viewed as investment assets under current regulations.
For more information, read: Largest Bank in Guatemala Turns to Crypto for Remittances