El Salvador and Paraguay Strengthen Crypto Oversight with New Regulatory Agreement

El Salvador and Paraguay have entered into a key regulatory agreement to enhance oversight in the crypto sector. Paraguay’s Secretaría de Prevención de Lavado de Dinero o Bienes (SEPRELAD) and El Salvador’s Comisión Nacional de Activos Digitales (CNAD) signed a Memorandum of Understanding (MOU) to improve cooperation on digital asset regulations.

The agreement aims to detect and control unauthorized crypto operations in Paraguay while reinforcing anti-money laundering (AML) standards. CNAD President Juan Carlos Reyes emphasized that this collaboration not only fosters innovation but also ensures financial integrity in the evolving digital economy.

Paraguay’s Central Bank recently reiterated that cryptocurrencies are not officially registered or authorized by the financial regulator, warning citizens to avoid unregulated crypto platforms. Reyes pointed to this statement as a reason why the partnership with SEPRELAD is crucial for strengthening compliance and investor protection.

El Salvador’s CNAD has developed a globally recognized regulatory framework for digital assets, requiring all crypto service providers to obtain a Digital Asset Service Provider (DASP) license. The country has previously signed a similar agreement with Argentina’s Comisión Nacional de Valores (CNV) to expand regulatory collaboration.

With this latest move, El Salvador continues to position itself as a leader in crypto regulation, sharing its expertise with global partners to promote a more transparent and compliant crypto market. While details of Paraguay’s regulatory implementation remain unclear, this agreement signals growing efforts to establish stronger crypto governance in Latin America.