Paraguayan agencies are ready to integrate the cryptographic sector. All that is missing is legislation.
That is according to Juan Carlos Reyes, president of the National Commission of Digital Assets (CNAD), the agency in charge of regulating cryptocurrencies in El Salvador.
“From my perspective, Paraguay seems to have the basis established for supervision, regulation and tax regimes. It seems that they are only waiting for politicians to approve or propose a formal law to move forward, “Reyes told Coindesk.
On Friday, Reyes signed a cryptographic regulatory agreement with Liliana Elizabeth Alcaraz Recalde, head of Secretary of Secretary of money laundering or goods (Smiped) of Paraguay. The agreement aims to facilitate cooperation between the two countries when it comes to cryptography, including the detection and control of cryptographic operations without a license in Paraguay and strengthening practices against money laundering.
“While here, I had the opportunity to attend a presentation of the Tax Director, who described the strategy and direction proposed by the country to regulate cryptocurrencies once the government provides legislative clarity,” Reyes told Coindesk. “We have also been involved with the Financial Research Unit of Paraguay for some time, sharing the best practices and studying how El Salvador has been successful and survived this market.”
El Salvador has one of the most complete cryptographic regulatory frameworks in the world, and other countries have communicated with the small Central American nation to obtain guidance. In December, Reyes signed a similar agreement with the National Securities Commission of Argentina (CNV).
“A concern that I have about the delay in establishing clear regulations is the potential growth of an informal cryptography market. If it is not addressed soon, it could expand on a scale that becomes difficult, if not impossible, of supervision effectively, ”Reyes on Paraguay said.
“This reminds me of the non -regulated sale of US dollars outside the formal retail channels in many countries with their own coins,” he added. “Independent vendors often provide better rates, but there is no traceability of the funds or visibility of who is involved. Without timely regulation, I am worried that cryptocurrencies can follow a similar trajectory here, growing to a point that is difficult to handle. “
Seprelad did not respond to a request for comments.
