Paraguay awaits legislative approval to integrate cryptocurrency, as per CNAD President Juan Carlos Reyes. A regulatory agreement with El Salvador aims to enhance cooperation and address unlicensed operations. There is concern that delays may lead to an unregulated crypto market in Paraguay.
According to Juan Carlos Reyes, the president of El Salvador’s Comisión Nacional de Activos Digitales (CNAD), Paraguay is poised to integrate cryptocurrency, pending legislative action. Reyes highlights that Paraguay has established the necessary framework for regulation, taxation, and oversight of the crypto sector. The essential element remaining is formal approval from the political sphere to advance these plans.
On Friday, Reyes formalized a crypto regulatory agreement with Liliana Elizabeth Alcaraz Recalde, who leads Paraguay’s Secretaría de Prevención de Lavado de Dinero o Bienes (SEPRELAD). This agreement intends to foster collaboration between El Salvador and Paraguay, focusing on the oversight of crypto activities and enhancing anti-money laundering efforts in Paraguay.
During his visit, Reyes noted a presentation by Paraguay’s Director of Taxation, which detailed the proposed strategy for cryptocurrency regulation contingent upon legislative clarity from the government. Collaborations with Paraguay’s Financial Investigative Unit have also been ongoing, allowing both nations to share best practices regarding crypto market regulation.
El Salvador is recognized for having one of the most robust crypto regulatory frameworks globally, attracting interest from other nations seeking guidance. In December, Reyes similarly signed an agreement with Argentina’s Comisión Nacional de Valores (CNV).
Reyes expressed concern regarding the delay in regulatory establishment, indicating that such inaction could lead to the rise of an unregulated crypto market in Paraguay. He cautioned that if this issue remains unresolved, it may escalate beyond manageable proportions, akin to the unregulated parallel currency exchanges often seen in various countries with their own currencies.
In conclusion, Paraguay is on the verge of integrating cryptocurrency, pending legislative approval, as indicated by CNAD President Juan Carlos Reyes. The signed agreement between Paraguay and El Salvador aims to enhance regulatory cooperation, specifically in combating unlicensed crypto operations. However, delays in formal regulation could foster an unmanageable informal crypto market, necessitating prompt legislative action.
Original Source: www.coindesk.com
