Paraguayan agencies are ready to integrate the crypto sector. All that’s missing is the legislation.
That’s according to Juan Carlos Reyes, the president of the Comisión Nacional de Activos Digitales (CNAD), the agency in charge of regulating cryptocurrencies in El Salvador.
“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,” Reyes told CoinDesk.
On Friday Reyes signed a crypto regulatory agreement with Liliana Elizabeth Alcaraz Recalde, head of Paraguay’s Secretaría de Prevención de Lavado de Dinero o Bienes (SEPRELAD). The agreement aims to facilitate cooperation between the two countries when it comes to crypto, including the detection and control of unlicensed crypto operations in Paraguay and the strengthening of anti-money laundering practices.
“While here, I had the opportunity to attend a presentation by the Director of Taxation, who outlined the country’s proposed strategy and direction for regulating cryptocurrencies once the government provides legislative clarity,” Reyes told CoinDesk. “We’ve also been engaging with Paraguay’s Financial Investigative Unit for some time, sharing best practices and studying how El Salvador has successfully regulated and supervised this market.”
El Salvador has one of the most comprehensive crypto regulatory frameworks in the world, and other countries have reached out to the small Central American nation for guidance. Back in December, Reyes signed a similar agreement with Argentina’s Comisión Nacional de Valores (CNV).
“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,” Reyes said about Paraguay.
“This reminds me of the unregulated sale of U.S. dollars outside formal retail channels in many countries with their own currencies,” he added. “Independent sellers often provide better rates, but there’s no traceability of the funds or visibility into who’s involved. Without timely regulation, I worry cryptocurrencies could follow a similar trajectory here, growing to a point that’s tough to manage.”
SEPRELAD did not respond to a request for comment.