El Salvador has signed a regulatory agreement with Paraguay concerning cryptocurrencies, its second deal in three months. The MOU aims to enhance cooperation for regulation and combat unlicensed operations. El Salvador’s CNAD is known for its advanced regulatory framework and technology-driven approach. The partnership seeks to ensure financial integrity across the region.
El Salvador has formalized its collaboration with Paraguay by signing a regulatory agreement focused on cryptocurrencies, marking its second such deal in three months. The agreement, established through a Memorandum of Understanding (MOU) between Paraguay’s SEPRELAD and El Salvador’s CNAD, aims to enhance cooperation in the crypto sector while addressing unlicensed operations and anti-money laundering practices.
El Salvador continues to enhance its position as a leader in crypto regulation, possessing one of the most sophisticated regulatory frameworks globally. Through this agreement, both nations intend to ensure financial integrity and promote innovation in digital assets. CNAD President Juan Carlos Reyes emphasized that El Salvador’s experience would aid in cultivating a transparent economic environment.
The agreement serves as a response to Paraguay’s current regulatory stance, which indicates that cryptocurrencies remain unregistered and unauthorized by the Central Bank and its financial governance entities. Reyes highlighted the significance of the collaboration, linking it to the regulatory framework needed to establish a safer environment for crypto activities in Paraguay.
El Salvador’s CNAD has earned accolades for its technology-driven approach in licensing digital asset service providers. It acts as the sole regulatory body for digital assets, implying that any unlicensed operations are considered illegal. There is currently no clarity on whether Paraguay will adopt a similar regulatory structure.
Prior to the deal with Paraguay, El Salvador signed a regulatory agreement with Argentina’s CNV. Reyes has articulated CNAD’s commitment to sharing expertise and broadening the international reach of regulated crypto entities, which fosters a more extensive and well-regulated industry.
The recent agreement between El Salvador and Paraguay marks a significant step in international cryptocurrency regulation, showcasing El Salvador’s leadership in the crypto space. By establishing this regulatory framework, both countries aim to strengthen cooperation, enhance financial integrity, and curb unregulated activities. As El Salvador continues to expand its global footprint, it sets a precedent for robust collaboration in digital asset governance.
Original Source: www.coindesk.com
