El Salvador has signed a cryptocurrency regulation agreement with Paraguay, following a previous deal with Argentina. The MOU aims to enhance cooperation and combat unauthorized crypto operations while reinforcing anti-money laundering efforts. CNAD has a highly regarded regulatory framework, promoting international collaboration in the crypto sector.
El Salvador has signed a cryptocurrency regulation agreement with Paraguay, marking its second such deal within three months. This agreement follows a previous partnership with Argentina as El Salvador seeks to strengthen international alliances in the crypto sector. The agreement was formalized through a Memorandum of Understanding (MOU) between Paraguay’s Secretaría de Prevención de Lavado de Dinero o Bienes (SEPRELAD) and El Salvador’s Comisión Nacional de Activos Digitales (CNAD).
The MOU’s primary goal is to enhance cooperation between the two regulatory bodies concerning cryptocurrencies. Additionally, SEPRELAD and CNAD will work together to identify and control unauthorized crypto operations within Paraguay and fortify anti-money laundering practices. Juan Carlos Reyes, President of CNAD, expressed a commitment to innovation while ensuring financial integrity across borders.
Despite the regulatory advancements, the Central Bank of Paraguay has stated that no cryptocurrencies are authorized as of yet. Citizens are discouraged from engaging with unregulated crypto entities. Reyes emphasized the importance of the regulatory agreement with SEPRELAD while referencing the Central Bank’s statement on crypto authorization.
El Salvador’s CNAD is recognized for its advanced regulatory framework for digital assets, which has earned praise from crypto companies that have successfully obtained the Digital Asset Service Provider (DASP) license. Established as the sole regulatory authority for digital assets, CNAD plays a critical role in maintaining legal compliance for crypto operations in El Salvador.
While specific details on Paraguay’s adaptation of a similar regulatory framework remain unclear, the partnership aims to share El Salvador’s expertise in fostering a well-regulated crypto industry. Reyes previously highlighted two key objectives: sharing regulatory knowledge with international partners and expanding the global footprint of El Salvador’s regulated companies through strategic partnerships.
In conclusion, El Salvador’s recent regulatory agreement with Paraguay marks a significant step in enhancing crypto regulations in Latin America. Through this collaboration, both nations aim to improve financial integrity and combat unauthorized crypto operations. As El Salvador already boasts a sophisticated regulatory framework for digital assets, this partnership may influence the development of similar structures in Paraguay, paving the way for a more regulated and innovative crypto landscape in the region.
Original Source: www.coindesk.com
