El Salvador has signed a Memorandum of Understanding with Paraguay to regulate cryptocurrencies. This agreement, the second in three months, aims to enhance regulatory cooperation, combat unlicensed crypto activities, and share expertise. The CNAD’s comprehensive framework for digital assets positions El Salvador as a leader in the sector.
El Salvador has forged a collaborative agreement with Paraguay focused on the regulation of cryptocurrencies. This initiative marks El Salvador’s second regulatory arrangement within a span of three months, following an agreement with Argentina. As a nation with one of the most comprehensive cryptocurrency regulatory frameworks globally, El Salvador’s new partnership aims to enhance both countries’ capabilities in managing digital asset operations.
The agreement was formalized through a Memorandum of Understanding (MOU) signed by Paraguay’s Secretaría de Prevención de Lavado de Dinero o Bienes (SEPRELAD) and El Salvador’s Comisión Nacional de Activos Digitales (CNAD) last Friday. The MOU aims to bolster cooperation between both institutions regarding the cryptocurrency sector, as stated by SEPRELAD. Additionally, the two agencies will work together to monitor and control unauthorized crypto activities and enhance anti-money laundering measures.
CNAD President Juan Carlos Reyes remarked on the significance of this agreement, stating, “El Salvador continues to share its trajectory and success in the field of digital assets, strengthening international alliances to build a more connected and transparent future.” Reyes further emphasized that the agreement promotes innovation while ensuring financial integrity within an increasingly globalized economy.
Upon inquiry regarding the agreement’s specifics, Reyes noted that further details could be found in a statement from the Central Bank of Paraguay which reminded the public that cryptocurrencies are neither registered nor authorized by the central bank or the Superintendencia de Valores. Consequently, citizens of Paraguay were urged to avoid engaging with unregulated cryptocurrency entities.
El Salvador’s CNAD has been recognized for establishing one of the most sophisticated crypto regulatory environments. Positioned as the central regulatory authority for digital assets in El Salvador, the CNAD serves as the only legal entry point for all digital asset activities within the country. Any entity operating without a license from the CNAD is considered to be violating the law.
Following the agreement with Paraguay, it remains uncertain whether a similar regulatory structure will be put in place in the South American nation. El Salvador’s proactive approach to international collaboration in this sector is exemplified by an earlier agreement signed in December with Argentina’s Comisión Nacional de Valores (CNV).
Reyes reiterated El Salvador’s commitment to sharing its expertise and expanding the international presence of its regulated companies through strategic partnerships globally, underscoring the importance of well-regulated digital industries for participating nations.
In conclusion, El Salvador’s recent agreement with Paraguay signifies a strategic move to bolster cryptocurrency regulation and cooperation between the two nations. This arrangement builds on El Salvador’s already advanced framework for digital assets, emphasizing financial integrity and innovation. By partnering with Paraguay, El Salvador reinforces its role as a leader in the international cryptocurrency landscape, promoting safe and regulated practices in digital finance.
Original Source: www.coindesk.com
