Paraguay Poised for Crypto Integration, Awaiting Legislative Approval

Juan Carlos Reyes, El Salvador’s top crypto regulator, indicates that Paraguay is ready to adopt cryptocurrency, pending legislative approval. He signed a regulatory agreement with Paraguayan officials aimed at enhancing cooperation in crypto regulation. Reyes warns that delays in legislation may spur an unmanageable informal crypto market, underscoring the need for timely regulatory measures.

Juan Carlos Reyes, President of El Salvador’s Comisión Nacional de Activos Digitales (CNAD), asserts that Paraguay is poised to embrace cryptocurrency, awaiting only legislative approval. He emphasizes that Paraguay has established foundational frameworks for regulation, supervision, and taxation regarding cryptocurrencies. According to Reyes, legislative action from policymakers is the final step needed to advance integration into the crypto sector.

On Friday, Reyes formalized a regulatory agreement with Liliana Elizabeth Alcaraz Recalde, Director of Paraguay’s Secretaría de Prevención de Lavado de Dinero o Bienes (SEPRELAD). This agreement aims to enhance cooperation on issues related to crypto, focusing on identifying and managing unregulated crypto activities in Paraguay while bolstering anti-money laundering practices.

Reyes also noted his visit to a presentation by the Paraguayan Director of Taxation, who presented a comprehensive strategy for cryptocurrency regulation contingent on legislative clarity. He highlighted ongoing collaboration with Paraguay’s Financial Investigative Unit, sharing best practices based on El Salvador’s successful regulatory experience.

El Salvador is recognized for its advanced crypto regulatory framework, attracting interest from various nations seeking guidance. Reyes recently signed a comparable agreement with Argentina’s Comisión Nacional de Valores (CNV). He emphasizes the urgency of establishing clear regulations, warning that delays could foster an unmanageable informal crypto market, paralleling issues seen with unregulated U.S. dollar sales in many countries.

In conclusion, Paraguay is on the verge of integrating cryptocurrency into its economy, with established frameworks awaiting legislative approval. The cooperation agreement signed by El Salvador and Paraguay underscores the importance of regulatory clarity to prevent the growth of an unregulated crypto market. Immediate action is crucial to managing risks associated with informal operations and maintaining effective oversight in the sector.

Original Source: www.coindesk.com