Paraguay Waits for Cryptocurrency Law to Be Passed: El Salvador's Top Crypto Regulator
“In my view, Paraguay seems to have already created the basis for systems of supervision, regulation and taxation,” said CNAD President Juan Carlos Reyes.
Tom Carreras | Edited by Nikhilesh De , 11 Mar 2025 17:10 UTC
What you should know:
- Paraguay is ready to implement cryptocurrency and is only waiting for legislative approval, according to Juan Carlos Reyes, El Salvador's leading cryptocurrency regulator.
- On Friday, Paraguay and El Salvador signed an agreement to regulate cryptocurrencies.
- Reyes warned that slowing down the regulatory process could lead to the growth of an unregulated informal cryptocurrency market.
Paraguayan institutions are ready to integrate the crypto sector. All that is missing is legislative initiatives.
This was stated by Juan Carlos Reyes, president of the National Commission on Active Digital Assets (CNAD), which is responsible for regulating cryptocurrencies in El Salvador.
“From my perspective, Paraguay seems to have already laid the groundwork for oversight, regulation, and tax systems. It seems they are just waiting for politicians to approve or propose formal legislation to move forward,” Reyes told CoinDesk.
On Friday, Reyes signed an agreement on cryptocurrency regulation with Liliana Elizabeth Alcaraz Recalde, head of the Secretariat for the Prevention of Money or Income Laundering of Paraguay (SEPRELAD). The agreement aims to promote cooperation between the two countries in the field of cryptocurrency, including identifying and monitoring unlicensed cryptocurrency operations in Paraguay and strengthening anti-money laundering measures.
“While here, I had the opportunity to attend a presentation by the Director of Taxation, who presented the country’s proposed strategy and direction for regulating cryptocurrencies once the government clarifies the legislation,” Reyes told CoinDesk. “We have also been collaborating with the Financial Investigation Department of Paraguay for some time now, sharing best practices and learning how El Salvador has successfully regulated and monitored this market.”
El Salvador has one of the most extensive cryptocurrency regulations in the world, and other countries are turning 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 of the concerns I have with the delay in establishing clear regulations is the potential growth of the informal cryptocurrency market. If this is not addressed soon, it could grow to a size that would be difficult, if not impossible, to effectively control,” Reyes said of Paraguay.
“It reminds me of the unregulated sale of US dollars outside of official retail channels in many countries with their own currencies,” he added. “Independent sellers often offer better rates, but there is no way to track the funds or see who is involved. I fear that without timely regulation, cryptocurrencies could follow a similar trajectory here, reaching a point that is difficult to control.”
SEPRELAD did not respond to a request for comment.
