- El Salvador and Paraguay signed a regulatory agreement targeting anti-money laundering and detecting unlicensed crypto operations via their SEPRELAD-CNAD partnership.
- This partnership marks El Salvador’s second crypto regulatory deal in three months, following a December 2023 agreement with Argentina’s CNV.
El Salvador and Paraguay have formalized a regulatory agreement to enhance oversight of cryptocurrency activities, focusing on collaboration in detecting unlicensed operations and improving anti-money laundering (AML) practices. The deal marks El Salvador’s second such partnership in three months, following a similar agreement with Argentina in December 2023.
The agreement, signed last week between Paraguay’s Secretaría de Prevención de Lavado de Dinero o Bienes (SEPRELAD) and El Salvador’s Comisión Nacional de Activos Digitales (CNAD), aims to align regulatory frameworks and share expertise. SEPRELAD stated the partnership will help identify unauthorized crypto services in Paraguay and bolster AML compliance.
CNAD President Juan Carlos Reyes emphasized the pact’s role in fostering financial integrity in global markets.
“El Salvador continues to share its experience in digital assets, strengthening international alliances to build a more transparent future,” he stated on social media.
Paraguay’s Central Bank clarified that cryptocurrencies remain unregistered and unauthorized in the country, urging citizens to avoid unregulated crypto platforms. Reyes cited the bank’s position as evidence of the agreement’s relevance, though he provided no further details on its implementation.
Source: X/@BCP_PY
Continuing with the reports from El Salvador in ETHNews, El Salvador’s CNAD oversees all digital asset activities within its borders, requiring entities to obtain a Digital Asset Service Provider (DASP) license.
The agency’s regulatory model, praised for its technology-focused approach, has attracted licensed crypto firms. It remains unclear if Paraguay will adopt a similar licensing system under the agreement.
“To share our expertise with international partners, enabling them to harness the benefits of a well-regulated industry. … [And] to broaden the international footprint of our regulated companies by forging strategic partnership agreements with nations worldwide.”
Reyes previously highlighted two goals for international collaborations: enabling partner nations to benefit from El Salvador’s regulatory expertise and expanding the global reach of licensed crypto businesses.
