Paraguayan agencies are ready to integrate the crypto sector. All that is missing is the legislation.
It is, according to Juan Carlos Reyes, the president of Comisión Nacional de Activos Digitales (CNAD), the agency responsible for regulating cryptocurrencies in El Salvador.
“From my perspective, Paraguay seems to have the basic work for supervision, regulation and taxation regimes. It feels like they are just waiting for politicians to approve or suggest a formal law to move things forward, ”Reyes told Coindesk.
On Friday, Reyes signed a crypto -legislative agreement with Liliana Elizabeth Alcaraz Recalde, head of Paraguay’s Secretaría de Prevención de Lavado de Dineero O Bienes (Seprelad). The agreement aims to facilitate cooperation between the two countries when it comes to crypto, including detection and control of unlicensed crypto operations in Paraguay and strengthening the practice of money laundering.
“While I was here, I had the opportunity to attend a presentation of the Director of Taxation, outlining the country’s proposed strategy and direction to regulate cryptocurrencies when the government gives legislative clarity,” Reyes told Coindesk. “We have also been involved in Paraguay’s financial study unit for some time that shared the best practice and studied how El Salvador has successfully regulated and monitored this marketing.”
El Salvador has one of the most extensive crypto regulatory frameworks in the world, and other countries have reached the small Central American Nation for Guidance. Back in December, Reyes signed a similar agreement with Argentinas Comisión Nacional de Valores (CNV).
“A concern I have about the delay in establishing clear rules is the potential growth of an informal crypto market. If it is not treated soon, it can expand to a scale that becomes difficult, if not impossible, to oversee effectively, ”Reyes said of Paraguay.
“This reminds me of the unregulated sales of US dollars outside of formal retail channels in many countries with their own currencies,” he added. “Independent sellers often provide better rates, but there is no traceability of the funds or visibility in who is involved. Without timely regulation, I can worry that Cryptocurrencies could follow a similar course here, grow to a point that is difficult to control. “
Seprelad did not respond to a request for comment.
