New Partnership for Crypto Regulation
El Salvador has taken a significant step in establishing a regulatory framework for cryptocurrencies through a new agreement with Paraguay. This partnership aims to enhance cooperation between the two nations in the rapidly evolving crypto sector.
Details of the Memorandum of Understanding
On Friday, Paraguay’s Secretaría de Prevención de Lavado de Dinero o Bienes (SEPRELAD) officially signed a Memorandum of Understanding (MOU) with El Salvador’s Comisión Nacional de Activos Digitales (CNAD). This agreement is intended to facilitate collaboration between the institutions to address various aspects of the cryptocurrency industry.
According to SEPRELAD’s official announcement, the cooperation will focus on the detection and control of unauthorized cryptocurrency operations in Paraguay, as well as the strengthening of anti-money laundering efforts.
Strengthening International Alliances
Juan Carlos Reyes, President of the CNAD, expressed optimism about the collaboration, stating, “El Salvador continues to share its trajectory and success in the field of digital assets, strengthening international alliances to build a more connected and transparent future.” He emphasized that this agreement not only promotes innovation but also safeguards financial integrity in an increasingly borderless economy.
Regulatory Landscape in Paraguay
When approached for further information regarding the agreement, Reyes directed inquiries to a statement from the Central Bank of Paraguay. The statement clarified that cryptocurrencies are neither registered nor authorized by the central bank or the Superintendencia de Valores, which was established in 2023 as part of the central banking system.
Paraguayans have been cautioned against engaging with any cryptocurrency entities that lack authorization or regulation from the Superintendencia. Reyes highlighted that the central bank’s statement underscores the importance of the regulatory agreement between SEPRELAD and CNAD.
El Salvador’s Advanced Crypto Regulatory Framework
El Salvador’s CNAD is widely recognized for having one of the most advanced crypto regulatory frameworks globally. The CNAD was specifically designed to oversee digital assets, and its technology-first approach has garnered praise from crypto companies that have successfully obtained El Salvador’s Digital Asset Service Provider (DASP) license.
Notably, the CNAD serves as the sole entry point for all digital assets within the country. Anyone operating without a license from the commission is considered to be violating the law. Whether the agreement with Paraguay will lead to the establishment of a similar regulatory structure remains uncertain.
Previous Collaborations and Future Goals
El Salvador has previously signed a crypto regulatory agreement with Argentina’s Comisión Nacional de Valores (CNV) in December, further solidifying its commitment to international collaboration in the crypto space.
Reyes reiterated the CNAD’s two primary objectives regarding international partnerships: to share expertise with global counterparts to help them benefit from a well-regulated industry, and to expand the international presence of El Salvador’s regulated companies by establishing strategic partnerships worldwide.
This latest agreement with Paraguay marks another milestone in El Salvador’s ongoing efforts to foster a secure and innovative environment for digital assets.
