Paraguay Poised for Cryptocurrency Regulation, According to CNAD President
March 11, 2025 – 5:10 p.m. UTC
In a recent statement, Juan Carlos Reyes, the president of the Comisión Nacional de Activos Digitales (CNAD), expressed optimism about Paraguay’s readiness to engage with the cryptocurrency sector. He noted that while the infrastructure for supervision, regulation, and taxation is largely in place, the absence of formal legislation is a significant barrier to progress.
Groundwork Laid for Crypto Regulation
Reyes emphasized the potential for Paraguay to establish a robust regulatory environment that could foster the growth of the cryptocurrency market. “From my perspective, Paraguay seems to have the groundwork laid for supervision, regulation, and taxation regimes,” he stated in an interview with CoinDesk. “It feels like they’re just waiting for politicians to approve or propose a formal law to move things forward.”
This assertion follows Reyes’s recent signing of a crypto regulatory agreement with Liliana Elizabeth Alcaraz Recalde, the head of Paraguay’s Secretaria de Prevención de Lavado de Dinero o Bienes (SEPRELAD). The agreement is designed to enhance cooperation between Paraguay and El Salvador regarding cryptocurrency operations, particularly in areas such as detecting unlicensed cryptocurrency activities and bolstering anti-money laundering efforts.
Engagement with Paraguay’s Financial Institutions
Reyes reported that during his visit, he had the opportunity to meet with Paraguay’s Director of Taxation, who outlined the government’s proposed strategies for cryptocurrency regulation pending legislative clarity. This initiative reflects ongoing dialogues with Paraguay’s Financial Investigative Unit, where El Salvador and Paraguay have been collaborating to share best practices for cryptocurrency supervision.
"While here, I had the opportunity to attend a presentation by the Director of Taxation, who outlined the country’s proposed strategy and direction for regulating cryptocurrencies once the government provides legislative clarity,” Reyes remarked.
Concerns About Informal Crypto Markets
Reyes highlighted a critical concern regarding the delay in enacting clear regulations, warning that a burgeoning informal cryptocurrency market could emerge as a result. “One concern I have about the delay in establishing clear regulations is the potential growth of an informal crypto market," he said. "If it’s not addressed soon, it could expand to a scale that becomes difficult, if not impossible, to supervise effectively.”
Drawing a parallel to the unregulated sale of U.S. dollars in various countries, Reyes underscored the risks associated with a lack of oversight. "Independent sellers often provide better rates, but there’s no traceability of the funds or visibility into who’s involved. Without timely regulation, I worry cryptocurrencies could follow a similar trajectory here, growing to a point that’s tough to manage.”
Looking Ahead
As Paraguay navigates its regulatory landscape, the insights and frameworks established by El Salvador may serve as a roadmap. With cryptocurrencies continuing to gain popularity across Latin America, the establishment of clear regulatory frameworks will be crucial in ensuring a balanced approach that protects consumers while fostering innovation.
As of now, SEPRELAD has not responded to requests for comment on this developing situation.
About the Author
Tom Carreras writes about markets, bitcoin mining, and crypto adoption in Latin America. He holds a bachelor’s degree in English literature from McGill University and is based in Costa Rica. Carreras is a Bitcoin holder above CoinDesk’s disclosure threshold of $1,000.
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