El Salvador has signed a regulatory agreement with Paraguay to strengthen cooperation in cryptocurrencies. This is the second agreement within three months, following a similar deal with Argentina. The collaboration aims to enhance anti-money laundering efforts and ensure financial integrity in the crypto sector.
El Salvador has signed a regulatory agreement with Paraguay to enhance cooperation in the cryptocurrency sector. This marks El Salvador’s second regulatory collaboration within the past three months, following a similar agreement with Argentina. The agreement aims to establish a framework that supports cryptocurrency regulation and strengthens anti-money laundering efforts between the two nations.
The agreement was formalized by Paraguay’s Secretaría de Prevención de Lavado de Dinero o Bienes (SEPRELAD) and El Salvador’s Comisión Nacional de Activos Digitales (CNAD). SEPRELAD indicated that this Memorandum of Understanding (MOU) is intended to help in monitoring unlicensed crypto activities in Paraguay and to improve overall compliance and regulatory practices within the crypto industry.
Juan Carlos Reyes, President of CNAD, emphasized that this partnership reflects El Salvador’s commitment to sharing its expertise in the digital asset realm. He stated, “This agreement not only fosters innovation, but also ensures financial integrity in a borderless economy.”
Reyes also referenced a recent statement from Paraguay’s Central Bank, which has not yet authorized or registered cryptocurrencies. Citizens were advised to refrain from engaging with any unauthorized crypto entities. He underscored that the regulatory agreement between SEPRELAD and CNAD is vital to addressing these concerns.
El Salvador’s CNAD is recognized for having one of the most robust cryptocurrency regulatory frameworks globally. This framework requires all digital asset operations to be licensed through CNAD, and those operating without a license are violating the law. It remains uncertain whether Paraguay will establish a similar regulatory structure following this agreement.
In addition, El Salvador initiated a similar regulatory framework with Argentina’s Comisión Nacional de Valores (CNV) in December, highlighting their mission to broaden their international collaborations and assist regulatory bodies in other countries. Reyes reiterated the importance of international partnerships for fostering well-regulated industries across borders.
In conclusion, El Salvador and Paraguay’s new agreement signifies an important step in enhancing cryptocurrency regulation and collaboration between the countries. With El Salvador’s established regulatory framework, they are positioned to assist Paraguay in developing its crypto regulations, while simultaneously ensuring compliance and financial integrity in both nations. The commitment to anti-money laundering practices and regulatory cooperation may set the foundation for future growth in the digital asset market in South America.
Original Source: www.coindesk.com
