Juan Carlos Reyes of El Salvador asserts that Paraguay is ready to adopt cryptocurrency, pending legislative approval. A recent crypto regulatory agreement between Paraguay and El Salvador aims to improve cooperation on monitoring and regulatory practices. Reyes warns that delays in regulation may lead to an unmanageable informal crypto market.
El Salvador’s top crypto regulator, Juan Carlos Reyes, indicated that Paraguay is prepared to incorporate cryptocurrency, pending only legislative action. Reyes emphasized that Paraguay has established a foundation for regulatory oversight, taxation, and supervision in the crypto sector, waiting for political approval to move forward. He expressed concern regarding delays in regulation, which could foster an informal crypto market that may be difficult to manage.
On Friday, Reyes formalized a crypto regulatory agreement with Liliana Elizabeth Alcaraz Recalde, head of Paraguay’s SEPRELAD. This agreement aims to enhance collaboration between El Salvador and Paraguay in monitoring and regulating cryptocurrency activities, specifically focusing on unlicensed operations and strengthening anti-money laundering measures.
Reyes noted that he had discussions regarding Paraguay’s proposed strategy for regulating cryptocurrencies, which will be initiated once legislative clarity is provided by the government. He mentioned ongoing collaboration with Paraguay’s Financial Investigative Unit to exchange best practices, drawing insights from El Salvador’s successful regulatory framework.
El Salvador is recognized for its comprehensive approach to crypto regulation, and Reyes highlighted how other nations have sought guidance from them. He recalled a previous agreement signed with Argentina’s Comisión Nacional de Valores, emphasizing the importance of establishing clear regulations to prevent the rise of an unregulated market, which could mirror past financial imbalances seen in other countries.
Reyes analogized the potential for an unregulated crypto market to the informal sale of U.S. dollars outside established retail channels, where traceability and oversight become compromised. Without timely regulations, he warned, cryptocurrencies could face a similar path, becoming increasingly difficult to manage effectively.
In summary, Paraguay is poised to integrate cryptocurrency, waiting solely on legislative approval, according to Juan Carlos Reyes of El Salvador. The recent regulatory agreement with SEPRELAD aims to enhance cooperation and oversight between the two nations. Reyes cautioned against delays leading to an unmanageable informal market, highlighting the need for clear regulations to ensure effective supervision of the crypto landscape.
Original Source: www.coindesk.com
