El Salvador, Paraguay Strengthen Crypto Regulation Cooperation

El Salvador and Paraguay have taken a significant step forward in the global cryptocurrency landscape by signing an agreement to enhance cooperation on cryptocurrency regulation. This partnership, formalized through a Memorandum of Understanding (MOU) between Paraguay’s SEPRELAD (Secretariat for the Prevention of Money Laundering) and El Salvador’s CNAD (National Digital Assets Commission), aims to bolster both nations’ capabilities in monitoring and preventing illegal crypto activities, including efforts to combat money laundering.

The MOU outlines several key goals, including enhancing cooperation between the two countries on cryptocurrency regulation, improving the detection and control of illegal crypto activities, and strengthening anti-money laundering measures within the crypto sector. This collaboration is seen as a crucial step toward creating a more transparent and secure crypto environment, not only for El Salvador and Paraguay but also as a model for other countries to follow.

El Salvador’s CNAD has already established one of the most advanced cryptocurrency regulatory frameworks globally. The CNAD, created specifically to oversee digital assets, has gained recognition for its clear and technology-focused approach. Under this framework, the CNAD is the primary authority for digital assets in El Salvador, and companies operating without a CNAD license are considered to be breaking the law. This system has been praised by international crypto firms for its clear guidelines and supportive environment for digital asset businesses.

It remains to be seen whether Paraguay will adopt a similar licensing model as part of the new agreement. Notably, El Salvador also signed a similar regulatory agreement with Argentina’s Comisión Nacional de Valores (CNV) in December to enhance crypto market cooperation. This indicates El Salvador’s proactive approach in expanding its international influence in the crypto sector.

Despite limitations imposed by the International Monetary Fund, El Salvador has continued with its Bitcoin strategy, holding 6,111 BTC worth approximately $507.88 million after it bought an additional 40 BTC into its reserves last month. El Salvador agreed to certain limits on Bitcoin purchases under a $3.5 billion IMF deal and has until July 2025 to comply with these regulations. However, the country is accelerating its Bitcoin acquisitions ahead of the IMF’s deadline, demonstrating its commitment to the digital currency.

Reyes, the head of CNAD, outlined two key objectives for the commission’s international partnerships: sharing regulatory expertise to help other countries establish effective crypto