Paraguay is prepared to integrate cryptocurrency regulation, awaiting legislative approval, as stated by El Salvador’s top crypto regulator Juan Carlos Reyes. A recent regulatory agreement between the two countries aims to enhance cooperation in addressing unregulated crypto operations. Reyes warns that delays in establishing regulations could lead to the growth of an unmanageable informal crypto market.
According to Juan Carlos Reyes, President of El Salvador’s cryptocurrency regulatory agency, Paraguay is poised to adopt cryptocurrency, awaiting only legislative approval. Reyes states that the necessary infrastructure for regulation and taxation is in place, indicating that political action is the next step needed for advancement.
A crypto regulatory agreement was signed recently between Paraguay and El Salvador to enhance cooperation in mitigating unregulated cryptocurrency operations and improving anti-money laundering measures. Reyes emphasizes the readiness of Paraguayan agencies to incorporate the crypto sector as legislative clarity from the government is the final requirement.
Reyes attended a briefing from Paraguay’s Director of Taxation on the proposed framework for cryptocurrency regulation, which reflects El Salvador’s established, effective regulatory practices. This cooperation aims to share insights on successful crypto regulation with Paraguay’s Financial Investigative Unit and other authorities.
Reyes voiced concerns over delays in regulation potentially fueling a volatile and unmanageable informal crypto market, similar to unregulated dollar sales in various countries. Without prompt regulatory action, he fears that cryptocurrencies in Paraguay could spiral beyond effective supervision.
The regulatory framework established by El Salvador is regarded as one of the most comprehensive globally, attracting interest from other nations. Reyes had previously signed an agreement with Argentina’s securities regulator, emphasizing El Salvador’s role as a model for crypto legislation and oversight.
Paraguay is on the verge of integrating cryptocurrency regulation, pending legislative approval, as asserted by Juan Carlos Reyes. A signed agreement with El Salvador highlights cooperative efforts to address potential issues of unregulated crypto markets. Timely legislation is crucial, as delays could lead to challenges in managing the emerging crypto landscape, underscoring the necessity for structured regulations facilitated by both countries’ experiences in the sector.
Original Source: www.coindesk.com
