El Salvador has entered into a regulatory agreement with Paraguay on the topic of cryptocurrencies.
Last Friday, Paraguay’s Secretaría de Prevención de Lavado de Dinero o Bienes (SEPRELAD) signed a Memorandum of Understanding (MOU) with El Salvador’s Comisión Nacional de Activos Digitales (CNAD). SEPRELAD stated on its website that this document is meant to make cooperation between the two institutions easier for the crypto sector. The agency also mentioned that SEPRELAD and CNAD will work together to detect and control unlicensed crypto operations in Paraguay, while also strengthening anti-money laundering practices.
CNAD President Juan Carlos Reyes posted on X, “El Salvador continues to share its progress and success in the field of digital assets, strengthening international alliances to build a more connected and transparent future.” He added, “This agreement not only fosters innovation but also ensures financial integrity in a borderless economy.” When asked for more details about the agreement, Reyes pointed to a statement from Paraguay’s Central Bank given to CoinDesk on Thursday. The statement noted that cryptocurrencies are neither registered nor authorized by the Central Bank or the Superintendencia de Valores (established in 2023 and part of the Central Bank).
Paraguay’s citizens have been advised to avoid interacting with crypto entities that aren’t authorized or regulated by the Superintendencia.
The Central Bank’s statement “shows the importance” of the regulatory agreement between SEPRELAD and CNAD, Reyes said, without adding further comments.
El Salvador’s CNAD has established one of the most advanced crypto regulatory frameworks in the world. The CNAD was specifically created to regulate digital assets, and its technology-first approach has been highly praised by crypto companies that have received El Salvador’s Digital Asset Service Provider (DASP) license.
Reyes had previously told CoinDesk that the CNAD is the single point of entry for all digital assets in the country, meaning anyone not licensed by the commission is breaking the law. It’s unclear whether the agreement with Paraguay involves setting up a similar structure for the South American nation.
El Salvador also signed a crypto regulatory agreement with Argentina’s Comisión Nacional de Valores (CNV) in December.
Reyes had told CoinDesk at the time, “When it comes to international collaboration, CNAD has two core objectives: sharing our expertise with international partners, enabling them to tap into the benefits of a well-regulated industry, and broadening the international footprint of our regulated companies through strategic partnership agreements with nations around the world.”
