El Salvador and Paraguay Join Forces to Tackle Cryptocurrency Regulations

In a groundbreaking move for the crypto world, El Salvador and Paraguay have joined forces to tackle cryptocurrency regulations. Last Friday, the two nations

El Salvador and Paraguay have joined forces to tackle cryptocurrency regulations in a groundbreaking move for the crypto world. The two nations signed an agreement last Friday to improve cooperation on crypto issues.

The agreement will help both countries detect and control illegal crypto activities in Paraguay and improve efforts to fight money laundering.

Paraguay’s SEPRELAD (Secretariat for the Prevention of Money Laundering) and El Salvador’s CNAD (National Digital Assets Commission) signed a Memorandum of Understanding (MOU), which aims to enhance collaboration between the two agencies in the cryptocurrency sector.

“The document agrees to promote and facilitate mutual cooperation and the exchange of information between both institutions in the areas of control, supervision and regulation of digital asset service providers,” the document stated.

CNAD President Juan Carlos Reyes stated that El Salvador is a leader in digital assets, forging international partnerships to build a more connected and transparent future.

This latest agreement, which was signed at the Paraguayan headquarters of SEPRELAD, will help both institutions coordinate their efforts to detect, control and eventually prevent any illegal activities in Paraguay. It will also improve cooperation to fight money laundering.

The agreement also aims to improve efforts to tackle other illicit financial flows.

The statement adds that the two agencies will cooperate in technical assistance programs to third countries in their respective areas of competence.

“This new partnership is a testament to El Salvador’s commitment to fostering financial innovation and inclusion on a global scale,” said Juan Carlos Reyes, President of CNAD.

He added that CNAD is one of the most advanced crypto regulators in the world. It was specifically designed to regulate digital assets and its tech-focused approach has been praised by crypto companies that have received El Salvador’s Digital Asset Service Provider (DASP) license.

CNAD is the main authority for all digital assets in El Salvador, meaning anyone operating without a license is breaking the law. It’s still unclear if the agreement with Paraguay will set up a similar system there.

Earlier this month, El Salvador signed a crypto regulatory agreement with Argentina’s Comisión Nacional de Valores (CNV).

According to Reyes, CNAD has two main goals for international cooperation.

“We want to share El Salvador’s expertise to help other countries create their own strong and well-regulated industries. We are also interested in expanding the global presence of El Salvador’s regulated crypto companies.”