Paraguay Prepared for Cryptocurrency Integration Awaiting Legislative Action

El Salvador’s top crypto regulator, Juan Carlos Reyes, asserts that Paraguay is poised for crypto integration, only needing legislative approval. A recent agreement was signed to enhance cooperation in regulatory practices, while concerns about unregulated crypto markets continue to grow. Reyes emphasizes the importance of establishing clear regulations to prevent informal market expansion.

According to Juan Carlos Reyes, President of the Comisión Nacional de Activos Digitales (CNAD) in El Salvador, Paraguay is prepared to incorporate cryptocurrency and is merely awaiting legislative approval. He stated, “Paraguay seems to have the groundwork laid for supervision, regulation, and taxation regimes,” emphasizing the necessity for political action to advance the initiative.

Recently, a crypto regulatory agreement was signed between Paraguay and El Salvador aimed at enhancing cooperation in regulating cryptocurrencies. Reyes highlighted that Paraguayan authorities are ready to integrate the crypto sector, with legislation being the final component needed to move forward.

In his comments, Reyes noted that he had attended a presentation outlining taxation strategies for cryptocurrency regulation in Paraguay, stressing the importance of legislative clarity. He mentioned, “We’ve also been engaging with Paraguay’s Financial Investigative Unit for some time, sharing best practices and studying how El Salvador has successfully regulated and supervised this market.”

Reyes expressed his concern regarding the absence of clear regulations, warning about the possibility of an informal crypto market expanding uncontrollably. He drew parallels to unregulated U.S. dollar sales in various countries, pointing out the risks associated with lack of regulation. He cautioned, “Without timely regulation, I worry cryptocurrencies could follow a similar trajectory here, growing to a point that’s tough to manage.”

In summary, Paraguay is on the verge of integrating cryptocurrency, pending necessary legislative measures, as noted by CNAD President Juan Carlos Reyes. A recent agreement between Paraguay and El Salvador aims to bolster regulatory cooperation, while concerns regarding the potential growth of an unregulated crypto market continue to be voiced. Ultimately, strong regulatory frameworks are essential for fostering a safe and manageable cryptocurrency environment.

Original Source: www.coindesk.com