El Salvador has signed a regulatory agreement with Paraguay focused on cryptocurrency cooperation. This MOU aims to improve regulation, enhance anti-money laundering practices, and control unlicensed crypto operations. The collaboration follows a similar agreement with Argentina and underscores El Salvador’s commitment to fostering a robust legal framework for digital assets in Latin America.
El Salvador has entered into a regulatory agreement with Paraguay regarding cryptocurrencies. This initiative represents the second such agreement that El Salvador has established within a three-month timeframe. The collaboration aims to enhance regulatory practices within the cryptocurrency sector, a reflection of El Salvador’s robust legal framework for digital assets.
On Friday, Paraguay’s Secretaría de Prevención de Lavado de Dinero o Bienes (SEPRELAD) signed a Memorandum of Understanding (MOU) with El Salvador’s Comisión Nacional de Activos Digitales (CNAD). This MOU is expected to facilitate cooperation between the two regulatory bodies, focusing particularly on identifying and regulating unlicensed crypto operations as well as strengthening anti-money laundering efforts.
CNAD President Juan Carlos Reyes noted, “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 to support innovation while maintaining financial integrity within a borderless economic landscape.
Reyes highlighted, however, that cryptocurrencies remain unregistered and unauthorized within Paraguay, as per the Central Bank of Paraguay’s earlier statement. Furthermore, citizens were advised against engaging with unregulated crypto entities. Reyes emphasized the significance of the regulatory agreement by stating it illustrates the necessity for proper oversight in the crypto sector without disclosing additional details.
El Salvador’s CNAD is well-regarded for its advanced regulatory framework, having been designed specifically for digital asset regulation. The agency has gained positive feedback from crypto companies that have acquired the Digital Asset Service Provider (DASP) license and serves as the primary regulatory authority for all digital assets in the country.
Previously, El Salvador signed a crypto regulatory agreement with Argentina’s Comisión Nacional de Valores (CNV) in December. Reyes stated the CNAD’s objectives in international collaboration include sharing regulatory expertise and expanding the international operations of regulated firms through strategic partnerships.
In conclusion, El Salvador’s recent agreement with Paraguay signifies an effort to enhance cryptocurrency regulation and cooperation within the region. As El Salvador continues to establish its regulatory framework for digital assets, these partnerships may foster innovation while promoting financial integrity. The regulatory environments created by both countries may serve as a model for other nations seeking to navigate the complexities of cryptocurrency governance.
Original Source: www.coindesk.com
