El Salvador’s Top Crypto Regulator

Paraguayan companies are able to combine the crypto sector. All that’s lacking is the laws.

That’s in accordance with Juan Carlos Reyes, the president of the Comisión Nacional de Activos Digitales (CNAD), the company answerable for 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 advised CoinDesk.

On Friday Reyes signed a crypto regulatory settlement with Liliana Elizabeth Alcaraz Recalde, head of Paraguay’s Secretaría de Prevención de Lavado de Dinero o Bienes (SEPRELAD). The settlement goals to facilitate cooperation between the 2 nations in terms of crypto, together with the detection and management 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 additionally been partaking with Paraguay’s Financial Investigative Unit for a while, sharing greatest practices and finding out how El Salvador has efficiently regulated and supervised this market.”

El Salvador has probably the most complete crypto regulatory frameworks on the planet, and different nations have reached out to the small Central American nation for steering. Back in December, Reyes signed a related settlement 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 stated 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 didn’t reply to a request for remark.