Paraguay Awaits Crypto Legislation: Insights from El Salvador’s Regulator
Paraguay is poised to regulate cryptocurrency but requires legislative approval, according to Juan Carlos Reyes, El Salvador’s CNAD President. A regulatory agreement signed between El Salvador and Paraguay aims to enhance cooperation in the crypto sector, addressing potential informal market risks. Reyes emphasizes the urgency of regulation to ensure proper management and supervision of the emerging crypto landscape.
Juan Carlos Reyes, the President of the Comisión Nacional de Activos Digitales (CNAD) in El Salvador, has indicated that Paraguay is prepared to adopt cryptocurrency regulations, pending legislative approval. He emphasized that the nation has established a foundation for regulation, supervision, and taxation, which necessitates formal political action to progress.
On Friday, Reyes formalized a regulatory agreement with Liliana Elizabeth Alcaraz Recalde, the head of Paraguay’s Secretaría de Prevención de Lavado de Dinero o Bienes (SEPRELAD). This accord aims to enhance collaboration between Paraguay and El Salvador, focusing on regulatory compliance and anti-money laundering measures within the crypto sector.
Reyes also remarked on the potential risks associated with delays in regulation, cautioning against the emergence of a substantial and unmanageable informal crypto market. He noted that such a scenario could hinder effective supervision and could replicate issues seen in the unregulated currency exchange markets in other countries.
Additionally, Reyes acknowledged Paraguay’s Financial Investigative Unit’s proactive engagement with El Salvador to share best practices in cryptocurrency regulation. He expressed concern that without prompt legislative action, cryptocurrencies may proliferate in an unregulated manner, complicating oversight efforts significantly.
In summary, Paraguay is on the verge of integrating cryptocurrency regulations, with significant groundwork in place. The collaboration between Paraguay and El Salvador highlights the importance of regulatory clarity to prevent informal market growth. Authorities stress the urgency of legislative action to ensure the effective management of cryptocurrency sectors without falling into unregulated chaos, reminiscent of informal currency exchanges.
Original Source: www.coindesk.com
