El Salvador has signed a regulatory agreement with Paraguay on the issue of cryptocurrencies.
The Secretariat of Money Laundering of Paraguay (Constoped) signed a memorandum of understanding (MOU) with the Commission of El Salvador Nacional de Digital Assets (CNAD) last Friday.
The document is supposed to facilitate cooperation between the two institutions for the cryptographic sector, he declared on his website. The Smpellad and CNAD will also collaborate in the detection and control of cryptographic operations without a license in Paraguay, the agency said, and will strengthen practices against money laundering.
“El Salvador continues to share its career and success in the field of digital assets, strengthening international alliances to build a more connected and transparent future,” said CNAD president Juan Carlos Reyes, published in X. “This agreement not only encourages innovation, but also guarantees financial integrity into an economy without borders.”
When details about the agreement were requested, Reyes referred Coindesk to a statement made by the Central Bank of Paraguay on Thursday that cryptocurrencies are not registered or authorized by the Central Bank or the Superintendence of Securities (which was created in 2023 and is part of the Central Bank).
Paraguayans were advised not to interact with cryptographic entities that were not authorized or regulated by the Superintendency.
The Central Bank statement “tells the importance” of the regulatory agreement between Sumead and CNAD, Reyes said, without providing further comments.
The CNAD of El Salvador has established one of the most advanced cryptographic regulatory frameworks in the world. The CNAD was built on purpose to regulate digital assets; The agency’s technology approach has first been praised by the cryptographic companies that have received the Digital Assets Services Provider (DASP) license from El Salvador.
The CNAD is remarkably the only entry point for all digital assets in the country, which means that anyone who does not have a license for the commission is violating the law, Reyes said prior to Coindesk. It is not clear if the agreement with Paraguay implies establishing a similar structure for the South American nation.
El Salvador has already signed a cryptographic regulatory agreement with the National Securities Commission (CNV) of Argentina in December.
“In CNAD we have two central objectives, when it comes to international collaboration,” Reyes told Coindesk at that time. “To share our experience with international partners, allowing them to take advantage of the benefits of a well -regulated industry. … [And] to expand the international footprint of our regulated companies forging strategic association agreements with nations around the world. “
