Paraguay and El Salvador Sign Agreement to Strengthen Crypto Oversight and AML Efforts

Paraguay’s Secretaría de Prevención de Lavado de Dinero o Bienes (SEPRELAD) and El Salvador’s Comisión Nacional de Activos Digitales (CNAD) officially announced a cooperation agreement last Friday. The partnership aims to enhance oversight of the crypto sector, reinforce anti-money laundering (AML) measures, and identify unauthorized operations in Paraguay, according to SEPRELAD’s statement.

Juan Carlos Reyes, president of CNAD, emphasized the significance of the collaboration on X (formerly Twitter), noting El Salvador’s commitment to sharing its expertise in digital asset regulation to promote a more transparent and interconnected financial landscape.

El Salvador has emerged as a global leader in cryptocurrency regulation. The CNAD, its dedicated digital asset regulator, has adopted a tech-forward approach that has earned recognition from industry participants.

A key feature of El Salvador’s regulatory framework is that CNAD is the sole authority permitted to issue licenses to crypto operators within the country. Operating without a CNAD license is a legal violation.

However, it remains unclear whether Paraguay plans to adopt a similar regulatory structure as part of this new partnership.

Paraguay’s Current Stance on Digital Assets

Paraguay’s Central Bank issued a statement last Thursday reaffirming that cryptocurrencies are not officially recognized or authorized by the government or the newly established Superintendencia de Valores, a financial supervisory body launched in 2023.

In this context, CNAD President Reyes underscored the relevance of the agreement, highlighting its role in safeguarding users and promoting a secure financial environment. Details of the partnership, however, have not yet been disclosed.

Paraguayan authorities have also warned citizens to avoid engaging with crypto firms that are not registered or regulated by the Superintendencia de Valores.

Strengthening Regional Cooperation for Financial Security

This agreement with Paraguay follows a similar pact signed in December between El Salvador and Argentina’s Comisión Nacional de Valores (CNV). The CNAD is clearly expanding its international partnerships to advance regulatory frameworks across the region.

Reyes previously told CoinDesk that CNAD’s international cooperation efforts focus on two key objectives:

1. Sharing El Salvador’s regulatory expertise to help other nations establish robust crypto frameworks.
2. Supporting the global expansion of companies regulated by El Salvador through strategic alliances.

These agreements highlight the increasing importance of cryptocurrency regulation in Latin America. El Salvador is positioning itself as a regional and international leader by promoting clear regulatory guidelines and cooperative strategies to protect investors and financial institutions.

Whether Paraguay will implement a regulatory model similar to El Salvador’s remains to be seen. In the meantime, the new alliance marks another step toward enhancing transparency and security in the digital asset space across the region.