El Salvador has signed a regulatory agreement with Paraguay regarding cryptocurrency management.
Paraguay’s Secretariat for the Prevention of Money Laundering or Assets (SEPRELAD) has formalized a Memorandum of Understanding (MOU) with El Salvador’s National Commission of Digital Assets (CNAD) this past Friday.
Key Points:
- El Salvador and Paraguay are working together on crypto regulation.
- This marks the second regulatory agreement by El Salvador in three months.
- El Salvador is noted for its advanced regulatory framework in the cryptocurrency sector.
The intention of this document is to enhance cooperation between both entities for the crypto industry, as stated by SEPRELAD. The two agencies will also work together to monitor and regulate unauthorized crypto operations in Paraguay while reinforcing anti-money laundering measures.
“El Salvador continues to share its journey and achievements in digital assets, building international partnerships for a more connected and transparent future,” CNAD President Juan Carlos Reyes shared on X. “This agreement not only promotes innovation but also ensures financial integrity in a borderless economy.”
In response to inquiries regarding the agreement details, Reyes pointed CoinDesk to a statement from the Central Bank of Paraguay on Thursday, indicating that cryptocurrencies are not approved or registered by the central bank or the Superintendencia de Valores (which was established in 2023). Paraguayans are advised against engaging with crypto firms that lack authorization or regulation by the Superintendencia.
The central bank’s statement emphasizes the significance of the regulatory agreement between SEPRELAD and CNAD, Reyes noted, without further details.
El Salvador’s CNAD has introduced one of the world’s leading regulatory environments for digital assets. The CNAD was specifically created to oversee digital assets; its technology-centric approach has received extensive accolades from crypto companies that have gained El Salvador’s Digital Asset Service Provider (DASP) license.
The CNAD acts as the sole entry point for all digital assets in the country, meaning any party operating without a license from the commission is violating the law, as Reyes had previously informed CoinDesk. It remains unclear whether this agreement with Paraguay involves establishing a similar structure for the latter.
El Salvador has previously entered into a crypto regulatory agreement with the Comisión Nacional de Valores (CNV) of Argentina in December.
“At CNAD, our two primary goals for international collaboration are to share our expertise with global partners, allowing them to reap the advantages of a well-regulated sector… [and] to extend the international reach of our regulated companies by forming strategic partnerships worldwide.”
