El Salvador’s Top Crypto Regulator
Paraguay is on the brink of significant developments in the cryptocurrency sector, as regulatory frameworks are poised for implementation. This sentiment was echoed by Juan Carlos Reyes, the president of the Comisión Nacional de Activos Digitales (CNAD) of El Salvador, who indicated that Paraguay has made considerable progress in laying the groundwork for effective supervision and regulatory structures surrounding cryptocurrencies.
In a recent statement to CoinDesk, Reyes pointed out that what remains is a formal legislative framework. "From my perspective, Paraguay seems to have the groundwork laid for supervision, regulation, and taxation regimes. It feels like they’re just waiting for politicians to approve or propose a formal law to move things forward," he commented.
A pivotal step in this direction took place on Friday, when Reyes signed a crypto regulatory agreement with Liliana Elizabeth Alcaraz Recalde, the head of Paraguay’s Secretaría de Prevención de Lavado de Dinero o Bienes (SEPRELAD). This agreement aims to enhance cooperation between El Salvador and Paraguay in addressing unlicensed cryptocurrency activities and strengthening anti-money laundering efforts.
During his visit, Reyes also attended a presentation by Paraguay’s Director of Taxation, who shared the nation’s proposed strategies for cryptocurrency regulation, contingent on legislative clarity. He emphasized ongoing collaborations with Paraguay’s Financial Investigative Unit to share best practices and examine how El Salvador has successfully navigated the crypto landscape.
El Salvador is recognized for having one of the most comprehensive crypto regulatory frameworks globally, prompting interest from other nations seeking guidance. Earlier, Reyes secured a similar agreement with Argentina’s Comisión Nacional de Valores (CNV), reinforcing regional collaboration in developing the cryptocurrency industry.
Reyes raised concerns regarding the delay in implementing clear regulations, suggesting that the absence of formal oversight could lead to the growth of an informal crypto market. "One concern I have about the delay in establishing clear regulations is the potential growth of an informal crypto market. If it’s not addressed soon, it could expand to a scale that becomes difficult, if not impossible, to supervise effectively,” he warned. He likened the situation to the unregulated sale of U.S. dollars outside official channels in various countries, stressing the risks of untraceable transactions and an opaque marketplace.
As Paraguay stands at this crucial juncture, the need for timely regulation appears increasingly urgent. The stage is set for potentially groundbreaking developments in the region’s cryptocurrency landscape, hinging on the forthcoming legislative initiatives.
