El Salvador has entered a regulatory agreement with Paraguay on the topic of cryptocurrencies.
Paraguay’s Secretaría de Prevención de Lavado de Dinero o Bienes (SEPRELAD) signed a Memorandum of Understanding (MOU) with El Salvador’s Comisión Nacional de Activos Digitales (CNAD) last Friday.
The document is supposed to facilitate cooperation between the two institutions for the crypto sector, the SEPRELAD stated on its website. The SEPRELAD and CNAD will also collaborate in the detection and control of unlicensed crypto operations in Paraguay, the agency said, and strengthen anti-money laundering practices.
“El Salvador continues to share its trajectory and success in the field of digital assets, strengthening international alliances to build a more connected and transparent future,” CNAD President Juan Carlos Reyes posted on X. “This agreement not only fosters innovation, but also ensures financial integrity in a borderless economy.”
When asked for details about the agreement, Reyes referred CoinDesk to a statement made by the Central Bank of Paraguay on Thursday that cryptocurrencies are not registered nor authorized by the central bank or the Superintendencia de Valores (which was created in 2023 and is part of the Central Bank).
Paraguayans were advised to not interact with crypto entities that weren’t authorized or regulated by the Superintendencia.
The central bank’s statement “tells you the importance” of the regulatory agreement between the SEPRELAD and CNAD, Reyes said, without providing further comment.
El Salvador’s CNAD has established one of the most advanced crypto regulatory frameworks in the world. The CNAD was purposefully built to regulate digital assets; the agency’s agency technology-first approach has been thoroughly praised by crypto companies that have received El Salvador’s Digital Asset Service Provider (DASP) license.
The CNAD is notably the single point of entry for all digital assets in the country, meaning that anyone that isn’t licensed by the commission is breaking the law, Reyes had previously told CoinDesk. It is unclear whether the agreement with Paraguay involves setting up a similar structure for the South American nation.
El Salvador has already signed a crypto regulatory agreement with the Comisión Nacional de Valores (CNV) of Argentina in December.
“At CNAD we have two core objectives, when it comes to international collaboration,” Reyes told CoinDesk at the time. “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.”