El Salvador Signs Cryptocurrency Regulatory Deal With Paraguay
El Salvador previously signed an agreement with Argentina.
Tom Carreras | Edited by Steven Alpher on 10 March 2025, 19:31 UTC
Key facts:
- El Salvador and Paraguay cooperate on cryptocurrency regulation.
- This is the second regulatory agreement signed by El Salvador in the last three months.
- El Salvador has one of the most robust cryptocurrency regulation systems in the world.
El Salvador signs agreement with Paraguay to regulate cryptocurrencies.
Paraguay's Secretariat for the Prevention of Money Laundering or Bienes (SEPRELAD) concluded a Memorandum of Understanding (MOU) with El Salvador's National Commission on Digital Assets (CNAD) last Friday.
The document should facilitate cooperation between the two institutions in the field of cryptocurrencies, SEPRELAD commented on its website. SEPRELAD and CNAD will also work together to identify and control unlicensed cryptocurrency operations in Paraguay, the agency noted, and will also strengthen anti-money laundering measures.
“El Salvador continues to share its experience and achievements in the field of digital assets, strengthening international alliances to create a more connected and transparent future,” said CNAD President Juan Carlos Reyes at X. “This agreement not only promotes innovation, but also ensures financial stability in a borderless economy.”
When asked about the details of the agreement, Reyes referred to a statement from the Central Bank of Paraguay on Thursday that cryptocurrencies are not registered and do not have the permission of the central bank or the Superintendencia de Valores (which was founded in 2023 and is part of the Central Bank).
Paraguayans have been advised to avoid dealing with cryptocurrency entities that are not licensed or regulated by the Superintendent.
Reyes said the central bank's statement “underscores the importance” of the regulatory agreement between SEPRELAD and CNAD, without providing further comment.
El Salvador’s CNAD has developed one of the most advanced cryptocurrency regulatory systems in the world. CNAD was created specifically to regulate digital assets; the agency’s technology-focused approach has gained recognition from crypto companies that have obtained a Digital Asset Service Provider (DASP) license in El Salvador.
CNAD is a single point of access for all digital assets in the country, meaning anyone without a license from the commission is breaking the law, Reyes previously told CoinDesk. It’s unclear whether the agreement with Paraguay will create a similar structure for the South American country.
El Salvador already signed an agreement to regulate cryptocurrency with Argentina's National Securities Commission (CNV) in December.
“At CNAD, we have two key objectives in terms of international cooperation,” Reyes told CoinDesk at the time. “To share our expertise with international partners, allowing them to benefit from a well-regulated industry. … [And] to expand the international presence of our regulated companies by entering into strategic partnership agreements with various countries around the world.”
