El Salvador has entered into a legislative agreement with Paraguay on the topic of Cryptocurrencies.
Paraguay’s Secretaría de Prevención de Lavado de Dineero O Benes (Seprelad) signed a Memorandum of Understanding (Mou) with El Salvadors Comisión Nacional de Activos Digitales (CNAD) last Friday.
The document is to facilitate collaboration between the two institutions of the crypto sector, Seprelad said on its website. Seprelad and CNAD will also collaborate in detection and control of unlicensed crypto operations in Paraguay, the agency said, strengthening the practice of money laundering.
“El Salvador continues to share his orbit and success in digital assets and strengthens international alliances to build a more connected and transparent future,” Cnad President Juan Carlos Reyes, posted to X. “This agreement not only promotes innovation, but also ensures financial integrity in a boundless economy.”
When asked for details of the agreement, Reyes Coindesk referred to a statement from the Central Bank of Paraguay on Thursday that Cryptocurrencies are not registered or approved by the Central Bank or Superintentencia de Valores (which was established in 2023 and is part of the central bank).
Paraguayans were asked not to interact with crypto devices that were not authorized or regulated by Superintendencia.
The central bank’s statement “tells you the importance” of the legislative agreement between Seprelad and Cnad, Reyes said without giving further comments.
El Salvador’s Cnad has established one of the most advanced crypto -regulatory setting in the world. Cnad was targeted to regulate digital assets; The agency’s agency technology first approach has been thoroughly praised by cryptic companies who have received El Salvador’s Digital Asset Service Provider (DASP) license.
Cnad is especially the individual entry point for all digital assets in the country, which means that anyone who is not licensed by the Commission breaks the law, Reyes had previously told Coindesk. It is unclear whether the agreement with Paraguay involves the creation of a similar structure for the South American nation.
El Salvador has already signed a crypto regulation agreement with Comisión Nacional de Valores (CNV) from Argentina in December.
“At Cnad we have two core goals when it comes to international cooperation,” Reyes told Coindesk at that time. “To share our expertise with international partners, enabling them to take advantage of the benefits of a well -regulated industry. … [And] To expand the international footprint for our regulated businesses by forging strategic partnership agreements with nations around the world. “
