El Salvador has signed a crypto regulation agreement with Paraguay, marking its second such deal in three months. The agreement aims to enhance cooperation between regulatory bodies, focusing on combating unlicensed crypto operations and promoting financial integrity. El Salvador is recognized for its advanced crypto regulatory framework.
El Salvador has recently entered a regulatory agreement with Paraguay concerning cryptocurrency regulations. This new agreement follows El Salvador’s previous deal with Argentina, marking the second collaboration within just three months. Known for one of the world’s most comprehensive crypto regulatory frameworks, El Salvador continues to expand its influence in the digital asset space.
The agreement was formalized through a Memorandum of Understanding (MoU) signed by Paraguay’s Secretaría de Prevención de Lavado de Dinero o Bienes (SEPRELAD) and El Salvador’s Comisión Nacional de Activos Digitales (CNAD). This collaboration aims to enhance cooperation between the two regulatory bodies, facilitating the detection and control of unauthorized crypto operations while also fortifying anti-money laundering efforts.
CNAD President Juan Carlos Reyes emphasized the significance of the agreement, 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.” The agreement aims not only to promote innovation but also to maintain financial integrity across borders.
In response to inquiries about the agreement, Reyes cited a statement from the Central Bank of Paraguay, which indicated that cryptocurrencies remain unregistered and unauthorized by its regulatory bodies. He underscored the importance of the regulatory agreement, although specific details were not elaborated upon.
El Salvador’s CNAD has garnered recognition for establishing a highly advanced regulatory framework for digital assets. As the exclusive entry point for all digital assets in the country, any entity that operates without proper licensing is considered non-compliant. However, it remains uncertain if Paraguay will adopt a similar structured approach as part of this agreement.
In December, El Salvador formalized a crypto regulatory agreement with Argentina’s Comisión Nacional de Valores (CNV). Reyes has previously noted, “At CNAD we have two core objectives…enable[ing] them to harness the benefits of a well-regulated industry” and expanding the international presence of El Salvador’s regulated companies by forming strategic partnerships worldwide.
In summary, El Salvador’s recent agreement with Paraguay enhances international cooperation on cryptocurrency regulation. This collaboration aims to strengthen financial integrity and combat unlicensed crypto operations while potentially influencing Paraguay to adopt similar regulatory frameworks. El Salvador continues to be a leader in the digital asset landscape, having previously established significant partnerships with other nations, including Argentina.
Original Source: www.coindesk.com
