Paraguay Awaits Legislative Approval for Crypto Regulation, Says El Salvador’s CNAD President
Juan Carlos Reyes, president of El Salvador’s CNAD, asserts that Paraguay awaits legislative approval to regulate cryptocurrencies. A recent agreement with SEPRELAD aims to enhance cooperation between the two nations on crypto regulation. Delays may lead to an unregulated market, posing significant management challenges.
Juan Carlos Reyes, the president of El Salvador’s CNAD, asserts that Paraguay is poised to embrace cryptocurrency regulation, pending legislative approval. Reyes emphasizes that the necessary frameworks for supervision, regulation, and taxation have been established, with only political endorsement required to advance these initiatives.
On Friday, Reyes formalized a crypto regulatory partnership with Liliana Elizabeth Alcaraz Recalde of Paraguay’s SEPRELAD. This agreement aims to bolster collaboration in combating unlicensed crypto activities and enhancing anti-money laundering efforts between both nations.
During his visit, Reyes noted that he met with Paraguay’s Director of Taxation, who outlined prospective regulatory strategies awaiting government clarity. Collaborative efforts with Paraguay’s Financial Investigative Unit have also begun, focusing on sharing regulatory practices that have proven effective in El Salvador.
El Salvador’s progressive regulatory measures serve as a model to other countries, underscoring its leadership in the crypto sphere. Earlier, Reyes had entered into a partnership with Argentina’s CNV, reflecting El Salvador’s growing influence in Latin American crypto regulation.
Reyes raised concerns regarding the absence of formal regulations, warning that this delay may lead to an unregulated crypto market. He compared it to the informal U.S. dollar exchanges, stressing that without proper oversight, cryptocurrencies could proliferate to levels that would be immensely challenging to manage.
SEPRELAD has yet to provide a statement regarding this matter.
In summary, Juan Carlos Reyes’s statements highlight Paraguay’s readiness for cryptocurrency integration, hinging on legislative approval. The signed regulatory agreement between Paraguay and El Salvador showcases international cooperation to tackle cryptocurrency regulation effectively. However, the potential rise of an informal market due to regulatory delays serves as a critical warning for swift legislative action to prevent unmanageable growth in the crypto sector.
Original Source: www.coindesk.com
