Juan Carlos Reyes, El Salvador’s top crypto regulator, states that Paraguay is ready for cryptocurrency integration pending legislative approval. A recent agreement between El Salvador and Paraguay aims to facilitate cooperation in the crypto sector. Reyes cautions that delays in regulation may lead to an unmanageable informal crypto market.
Juan Carlos Reyes, the President of the Comisión Nacional de Activos Digitales (CNAD) in El Salvador, asserts that Paraguay is poised for the integration of cryptocurrencies, pending only the necessary legislative approval. Reyes remarked, “From my perspective, Paraguay seems to have the groundwork laid for supervision, regulation, and taxation regimes. It feels like they’re just waiting for politicians to approve or propose a formal law to move things forward.” He emphasizes the importance of regulations to prevent the rise of an informal crypto market.
On Friday, Reyes formalized a crypto regulatory agreement with Liliana Elizabeth Alcaraz Recalde, who leads Paraguay’s anti-money laundering agency, SEPRELAD. This agreement facilitates cooperation on detecting and managing unlicensed cryptocurrency activities, as well as bolstering anti-money laundering efforts in Paraguay. Reyes highlighted his engagement with Paraguay’s Financial Investigative Unit, sharing best practices learned from El Salvador’s experiences in cryptocurrency regulation.
El Salvador has established one of the most comprehensive frameworks for cryptocurrency regulation worldwide, and it has garnered international interest for its regulatory model. Reyes previously signed a similar agreement with Argentina’s Comisión Nacional de Valores (CNV). However, he expressed concern regarding delays in regulatory frameworks, stating, “If it’s not addressed soon, it could expand to a scale that becomes difficult, if not impossible, to supervise effectively.” Reyes cautioned against the possibility of an unregulated crypto market akin to informal currency exchanges prevalent in various nations.
In conclusion, Paraguay stands on the brink of integrating cryptocurrency within its financial system, having established the necessary regulatory groundwork which awaits legislative action. The recent agreement between El Salvador and Paraguay highlights the collaboration needed to ensure proper management and supervision of the sector. Timely regulatory measures are critical to prevent the growth of an informal crypto market, which Reyes warns could become unmanageable without proper oversight.
Original Source: www.coindesk.com
