El Salvador’s top crypto regulator sees Paraguay as ready for integration.
Paraguay Prepares for Crypto Regulations
Paraguay is on the brink of integrating cryptocurrency into its financial system, awaiting only legislative approval. According to Juan Carlos Reyes, President of El Salvador’s Comisión Nacional de Activos Digitales (CNAD), the country has already developed a foundation for supervision, taxation, and regulation. Reyes emphasized that Paraguay is positioned to move forward as soon as lawmakers finalize the legal framework.
El Salvador and Paraguay Sign Crypto Regulatory Agreement
On Friday, Reyes signed an agreement with Liliana Elizabeth Alcaraz Recalde, head of Paraguay’s Secretaría de Prevención de Lavado de Dinero o Bienes (SEPRELAD). The deal focuses on enhancing cooperation between the two nations in monitoring and controlling unlicensed crypto operations. It also aims to strengthen Paraguay’s anti-money laundering (AML) practices by leveraging El Salvador’s regulatory experience.
Concerns Over the Growth of an Informal Crypto Market
Reyes warned that further delays in crypto legislation could lead to the expansion of an unregulated market. Without formal oversight, cryptocurrencies in Paraguay could follow a similar path to the informal exchange of U.S. dollars in countries with weak financial controls. This could create challenges in tracking transactions and preventing illicit activities.
El Salvador’s Crypto Framework Serves as a Model
El Salvador, one of the first countries to establish a comprehensive crypto regulatory framework, has become a reference point for nations looking to regulate digital assets. Paraguay has been actively studying El Salvador’s approach, engaging with its Financial Investigative Unit to adopt best practices. Similar agreements have also been signed between El Salvador and Argentina, signaling growing regional cooperation on crypto regulation.
Paraguay’s Next Steps in Crypto Legislation
As Paraguay’s government reviews its crypto policies, stakeholders are watching for the next legislative moves. The approval of formal regulations would provide clarity for businesses and investors while reducing risks associated with unregulated transactions. Paraguay’s evolving stance on digital assets will play a crucial role in shaping its financial sector and its position in the global crypto economy.
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