Juan Carlos Reyes, president of El Salvador’s crypto regulatory body, asserts Paraguay is ready for cryptocurrency integration, pending legislative approval. A regulatory agreement was signed to facilitate cooperation in combating unlicensed crypto operations. Reyes warns that delays in regulation could foster an unregulated market, making oversight challenging.
Juan Carlos Reyes, El Salvador’s leading cryptocurrency regulator, stated that Paraguay is well-prepared to incorporate cryptocurrency, pending only legislative action. This was conveyed after he signed a crypto regulatory agreement with Paraguay’s SEPRELAD on Friday. Reyes warns that delays in regulation may result in a burgeoning informal cryptocurrency market that will be difficult to control.
During discussions, Reyes acknowledged that Paraguay’s regulatory framework for supervision and taxation appears nearly ready. He emphasized that politicians need to finalize a formal law to facilitate integration into the crypto sector. Reyes’s comments follow a presentation by Paraguay’s Taxation Director regarding the proposed cryptocurrency regulation strategy, contingent on government approval.
Reyes has indicated that El Salvador’s proven crypto regulatory frameworks have drawn interest from other nations seeking guidance. He signed a similar agreement with Argentina’s CNV last December, aiming for enhanced cooperation in crypto regulation. Concerns remain regarding informal markets—misregulation may lead cryptocurrencies to echo the unregulated dollar exchanges seen in various countries, where traceability is severely lacking.
Reyes highlighted that an unregulated cryptocurrency market could escalate rapidly, complicating oversight efforts. This anticipated trajectory poses risks similar to informal dollar sales, where independent sellers offer competitive rates but compromise regulatory control. Without timely legislation, the cryptocurrencies in Paraguay could follow a detrimental path of rapid informal growth, eluding effective management.
In summary, Paraguay is poised to welcome cryptocurrency with the appropriate legislation yet to be approved. Juan Carlos Reyes has flagged the importance of establishing clear regulations to avoid the growth of an unmanageable informal market. With a foundation already set in terms of regulatory frameworks, the advancement of crypto legislation in Paraguay hinges on political action, as the collaboration with El Salvador strengthens efforts toward effective regulation.
Original Source: www.coindesk.com
