Juan Carlos Reyes, El Salvador’s top crypto regulator, states that Paraguay is ready to integrate cryptocurrencies and only requires legislative approval. A regulatory agreement was signed between Paraguay and El Salvador to enhance cooperation against unlicensed crypto activities. Delays in regulations may lead to an informal crypto market that could be challenging to manage.
According to Juan Carlos Reyes, the president of El Salvador’s Comisión Nacional de Activos Digitales (CNAD), Paraguay is primed to incorporate cryptocurrency into its economy and is merely awaiting legislative approval. This assertion follows a recent regulatory agreement signed between Paraguay and El Salvador. Reyes emphasizes the urgency for regulations to prevent the emergence of an unmanageable informal crypto market that could proliferate without oversight.
The regulatory agreement, signed on Friday by Reyes and Liliana Elizabeth Alcaraz Recalde from Paraguay’s Secretaría de Prevención de Lavado de Dinero o Bienes (SEPRELAD), focuses on enhancing cooperation for crypto oversight, including combating unauthorized operations and reinforcing anti-money laundering practices. Reyes noted that Paraguay has laid down the foundation for effective supervision and taxation but requires legislative action to advance the process.
During a meeting in Paraguay, Reyes gained insights from the Director of Taxation regarding the government’s strategy for crypto regulations pending legislative clarity. Reyes remarked on El Salvador’s success in regulating the cryptocurrency sector and mentioned ongoing collaboration with Paraguay’s Financial Investigative Unit to exchange best practices.
Reyes expressed concern over the delays in establishing clear regulatory guidelines, warning of the risks posed by the growth of an informal cryptocurrency market. He likened the situation to unregulated currency exchanges, emphasizing the potential for cryptocurrencies to reach a level of operation that becomes virtually impossible to supervise without timely regulations.
In summary, Paraguay appears poised for the integration of cryptocurrency, contingent on legislative decisions. The recent agreement with El Salvador highlights the collaborative efforts in addressing crypto regulation and anti-money laundering. However, the potential growth of an unregulated crypto market presents significant challenges that necessitate immediate legislative action to ensure effective oversight and control over the sector.
Original Source: www.coindesk.com
