Juan Carlos Reyes, El Salvador’s top crypto regulator, stated that Paraguay is ready to integrate cryptocurrency pending legislative approval. A regulatory agreement has been signed between Paraguay and El Salvador to enhance cooperation in crypto regulation. Concerns over delays in regulation could result in an informal crypto market that is difficult to manage.
Juan Carlos Reyes, President of the Comisión Nacional de Activos Digitales (CNAD) in El Salvador, indicated that Paraguay is well-prepared to incorporate cryptocurrency into its economy and is merely awaiting legislative approval. Recent discussions highlighted that Paraguayan agencies have the foundational work necessary for regulation, supervision, and taxation of cryptocurrencies, primarily pending a law from the government.
A significant crypto regulatory agreement was signed recently between El Salvador and Paraguay, aimed at enhancing collaboration in the crypto sector, including monitoring unlicensed crypto activities and improving anti-money laundering efforts. “From my perspective, Paraguay seems to have the groundwork laid for supervision, regulation, and taxation regimes; they are just waiting for politicians to approve or propose a formal law to move things forward,” said Reyes.
Reyes attended a presentation by Paraguay’s Director of Taxation, who outlined strategies for cryptocurrency regulation once a clear legislative framework is established. He emphasized the importance of timely regulations to prevent the rise of an unregulated crypto market, which he cautioned could grow beyond manageable levels. He compared this potential scenario to the informal sale of U.S. dollars in other countries, highlighting concerns around fund traceability.
El Salvador has created one of the most comprehensive frameworks for cryptocurrency regulation globally, which has attracted interest from other nations seeking advice. Reyes expressed concern about delays in legislation that could lead to the proliferation of an informal crypto market in Paraguay, paralleling challenges faced in other countries where regulatory clarity is lacking.
In summary, Paraguay appears poised to embrace cryptocurrency integration, pending essential legislative measures. The agreement signed between El Salvador and Paraguay plays a crucial role in fostering regulatory cooperation against unlicensed crypto activities. Juan Carlos Reyes has voiced concerns about the risks associated with regulatory delays, potentially leading to an unmanageable informal market that could undermine financial oversight.
Original Source: www.coindesk.com
