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Paraguay Joins El Salvador’s Push for Crypto Regulation
El Salvador continues to lead Latin America in the regulation and adoption of digital assets, forging groundbreaking partnerships to shape the future of financial technology across borders. Through strategic regulatory agreements, such as those with Argentina and now Paraguay, El Salvador’s National Commission for Digital Assets (CNAD) is redefining what it means to innovate within a secure and transparent framework. This effort aims to create a globally interconnected economy rooted in financial integrity and trust.
> “El Salvador continues to share its trajectory and success in the field of digital assets, strengthening international alliances to build a more connected and transparent future,” Reyes emphasized in a recent post on X (formerly Twitter). “This agreement not only fosters innovation, but also ensures financial integrity in a borderless economy.”
The statement further advised Paraguayan citizens to avoid engagement with crypto-related entities that are not regulated by the Superintendencia, highlighting the regulatory void that still exists within the country.
Reyes explained, “The central bank’s statement tells you the importance of the regulatory agreement between SEPRELAD and CNAD. It’s meant to clarify that, as of now, no governmental directive or legislative framework has been established to address the legality of cryptocurrencies.”
Reyes has previously stated, “CNAD is the single point of entry for all digital assets in the country. Anyone not licensed by the Commission is operating outside the law.” This centralized, transparent approach provides both clarity and security to investors, companies, and citizens alike.
This isn’t El Salvador’s first foray into regional cooperation. In December 2024, the CNAD signed a regulatory pact with Argentina’s Comisión Nacional de Valores (CNV). These agreements reflect El Salvador’s two-pronged international strategy:
> “At CNAD we have two core objectives when it comes to international collaboration,” Reyes told CoinDesk. “To share our expertise with international partners, enabling them to harness the benefits of a well-regulated industry. And to broaden the international footprint of our regulated companies by forging strategic partnership agreements with nations worldwide.”
These developments not only boost confidence among global investors and blockchain companies, but they also open new avenues for financial inclusion and economic modernization in Latin America.
With no signs of slowing down, El Salvador’s CNAD is poised to remain at the forefront of crypto regulation — not just in Latin America, but on the global stage.
Photo: Presidencial House. El Salvador.
A Regional Powerhouse in Crypto Regulation
El Salvador’s CNAD, under the leadership of President Juan Carlos Reyes, has become a benchmark for crypto regulation worldwide. Its comprehensive legal framework, designed specifically for digital assets, has made it a model for emerging markets looking to foster innovation without compromising financial stability.> “El Salvador continues to share its trajectory and success in the field of digital assets, strengthening international alliances to build a more connected and transparent future,” Reyes emphasized in a recent post on X (formerly Twitter). “This agreement not only fosters innovation, but also ensures financial integrity in a borderless economy.”
Clarifying Paraguay’s Position on Crypto
Following the announcement of the partnership between El Salvador and Paraguay, questions arose regarding the scope and nature of the agreement. Reyes pointed to a recent statement by Paraguay’s Central Bank, which reiterated that cryptocurrencies are currently neither authorized nor registered by the country’s financial regulators, including the Superintendencia de Valores — a new agency created in 2023 under the Central Bank.The statement further advised Paraguayan citizens to avoid engagement with crypto-related entities that are not regulated by the Superintendencia, highlighting the regulatory void that still exists within the country.
Reyes explained, “The central bank’s statement tells you the importance of the regulatory agreement between SEPRELAD and CNAD. It’s meant to clarify that, as of now, no governmental directive or legislative framework has been established to address the legality of cryptocurrencies.”
El Salvador’s Tech-First Regulatory Approach
El Salvador’s CNAD stands out globally for its technology-first and innovation-driven regulatory philosophy. The agency was specifically created to govern digital assets and is recognized for its efficient, transparent, and secure licensing process. Companies seeking to operate in El Salvador’s digital asset ecosystem must obtain a Digital Asset Service Provider (DASP) license, ensuring adherence to stringent regulatory standards.Reyes has previously stated, “CNAD is the single point of entry for all digital assets in the country. Anyone not licensed by the Commission is operating outside the law.” This centralized, transparent approach provides both clarity and security to investors, companies, and citizens alike.
Toward a Unified Latin American Crypto Framework?
While it remains unclear whether Paraguay will adopt a similar regulatory model, the agreement with El Salvador suggests a growing interest among Latin American nations in harmonizing their crypto policies. By collaborating with CNAD, countries like Paraguay may be exploring ways to build their regulatory capacity, drawing from El Salvador’s successful blueprint.This isn’t El Salvador’s first foray into regional cooperation. In December 2024, the CNAD signed a regulatory pact with Argentina’s Comisión Nacional de Valores (CNV). These agreements reflect El Salvador’s two-pronged international strategy:
> “At CNAD we have two core objectives when it comes to international collaboration,” Reyes told CoinDesk. “To share our expertise with international partners, enabling them to harness the benefits of a well-regulated industry. And to broaden the international footprint of our regulated companies by forging strategic partnership agreements with nations worldwide.”
El Salvador: Pioneering a Transparent Digital Economy
El Salvador’s proactive role in shaping global crypto regulation signals its ambition to become a regional and international hub for digital assets. By fostering legal clarity, encouraging technological innovation, and safeguarding financial systems, the CNAD is setting the standard for how emerging economies can leverage crypto for sustainable growth.These developments not only boost confidence among global investors and blockchain companies, but they also open new avenues for financial inclusion and economic modernization in Latin America.
The Future of Crypto in Latin America
As more Latin American countries grapple with the challenges and opportunities of digital assets, El Salvador’s leadership could prove transformative. Strategic alliances, such as those with Argentina and Paraguay, might pave the way for a regional digital asset framework, enhancing cross-border collaboration, innovation, and compliance.With no signs of slowing down, El Salvador’s CNAD is poised to remain at the forefront of crypto regulation — not just in Latin America, but on the global stage.
Photo: Presidencial House. El Salvador.
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