El Salvador Enters Cryptocurrency Agreement with Paraguay
March 10, 2025, 7:31 p.m. UTC
In a significant development for the cryptocurrency landscape in Latin America, El Salvador has formalized a regulatory agreement with Paraguay, focusing on the governance of digital assets. This agreement was set in motion when Paraguay’s SecretarĂa de PrevenciĂłn de Lavado de Dinero o Bienes (SEPRELAD) signed a Memorandum of Understanding (MOU) with El Salvador’s ComisiĂłn Nacional de Activos Digitales (CNAD) last Friday, marking an important step toward international collaboration in the crypto sector.
Aiming for Enhanced Collaboration
The MOU is designed to foster cooperation between SEPRELAD and CNAD, particularly in areas concerning the regulation and supervision of cryptocurrency operations within Paraguay. According to SEPRELAD’s official statement, the agreement will also involve collaborative efforts in detecting and controlling unlicensed cryptocurrency operations, while strengthening anti-money laundering practices to protect the financial integrity of both nations.
Juan Carlos Reyes, the President of CNAD, underscored the importance of this agreement, stating on social media platform X, “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.” He emphasized that the agreement not only promotes innovation but also established a framework for ensuring financial integrity amid a globalized economy.
Framework Insights and Regulatory Environment
While more details about the specifics of the agreement are pending, additional context has been provided through a statement from the Central Bank of Paraguay. It has clarified that cryptocurrencies are not registered or authorized by the Central Bank or the Superintendencia de Valores, which was established in 2023 to oversee securities and investment activities. The Central Bank urged Paraguayans to refrain from engaging with unregulated cryptocurrency entities, highlighting the crucial nature of the newly established regulatory agreement with El Salvador.
Reyes reflected on the central bank’s position by indicating that it reinforces the significance of the regulatory framework created through the MOU. However, specifics about whether Paraguay will adopt a similar regulatory structure as that of El Salvador’s CNAD remain unclear.
El Salvador’s Crypto Regulatory Landscape
El Salvador is recognized for its progressive stance on cryptocurrency regulation, having established one of the most advanced frameworks for digital asset governance in the world. CNAD serves as the sole regulatory body overseeing digital assets in El Salvador, ensuring that any entity engaging in cryptocurrency operations without the appropriate licensing is operating unlawfully.
Previously, El Salvador gained international attention for its crypto regulatory agreement with Argentina’s Comisión Nacional de Valores (CNV) in December. Reyes noted at that time the dual objectives of CNAD’s international collaboration: sharing expertise with global partners to facilitate a well-regulated crypto industry, and helping expand the reach of regulated companies through strategic partnerships across nations.
Looking Ahead
As both nations move ahead with the implementation of this MOU, the agreement signifies a commitment to building a robust regulatory framework that could potentially shape the future of cryptocurrency operations in the region. With El Salvador leading the charge in establishing regulatory standards, the collaboration with Paraguay could serve as a model for other countries in Latin America seeking to navigate the complexities of digital asset governance.
The ongoing developments in this partnership will be closely monitored by industry stakeholders eager to see how it may influence the broader cryptocurrency landscape in the region.
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