Juan Carlos Reyes from El Salvador’s CNAD stated that Paraguay is ready for cryptocurrency integration, pending legislative action. A recent regulatory agreement between Paraguay and El Salvador aims to improve cooperation on crypto regulations. Reyes warned that delays could foster an unmanageable informal crypto market, emphasizing the importance of timely regulation.
Paraguay is poised to embrace cryptocurrency integration, contingent solely upon the approval of legislative measures, as articulated by Juan Carlos Reyes, the esteemed president of El Salvador’s Comisión Nacional de Activos Digitales (CNAD). A collaborative regulatory agreement was recently established between Paraguay and El Salvador, marking a significant step forward in the region’s crypto landscape.
Reyes indicated that Paraguay has laid the foundational framework necessary for effective supervision, regulation, and taxation of cryptocurrencies but awaits governmental action to implement formal legislation. He underscored the urgency of this matter, warning that delays in regulatory measures could engender an unregulated and unmanageable informal crypto market within Paraguay.
During a recent visit, Reyes engaged with Paraguayan officials, including the Director of Taxation, to discuss the proposed regulatory framework for cryptocurrencies. He highlighted El Salvador’s successful experiences in crypto regulation, aiming to assist Paraguay in safeguarding its crypto market and mitigating risks associated with unlicensed operations and money laundering.
El Salvador’s regulatory approach to cryptocurrencies is recognized globally, attracting attention from various nations seeking guidance in fostering their own crypto markets. Reyes cautioned that the absence of clear regulations could enable the growth of an informal market, similar to unregulated currency exchanges, ultimately leading to challenges in governance and oversight.
In summary, Paraguay is prepared to advance its cryptocurrency landscape, contingent upon the establishment of legislative measures. The collaboration with El Salvador, as emphasized by Juan Carlos Reyes, aims to foster a well-regulated crypto environment to prevent the proliferation of informal markets. The shared expertise between the two countries signifies a proactive approach in addressing potential regulatory challenges within the evolving crypto market.
Original Source: www.coindesk.com
