El Salvador and Paraguay enhances the supervision of encryption with a new organizational agreement
Al Salvador and Paraguay took an important step towards tightening encrypted currency regulations Signing a memorandum of understanding (Memorandum of Understanding) Last Friday.
The agreement aims to enhance cooperation between the two countries in monitoring digital asset activities, preventing illegal financial flows, and enhancing financial integrity in the encrypted currency sector.
The agreement, signed by the Paraguay Municipality to prevent money laundering (CNAD), focuses on sharing joint information, organizational supervision, and industry supervision.
This represents the latest in a series of international cooperation by El Salvador, who put himself as a leader in the organization of encryption.
Salvador expands the effect of encryption
El Salvador has continued to establish himself as a major player in organizing cryptocurrency since it became the first country to adopt Bitcoin as a legal tendency in 2021.
CNAD, which supervises all activities of the country’s digital assets, has implemented one of the most advanced regulatory frameworks in the world.
It guarantees all encryption companies that work in El Salvador to license DASP service provider (DASP), which puts a precedent for other countries looking to organize the sector.
The agreement with Paraguay follows a similar deal signed with Argentina, the CNV (CNV) in December, confirming the El Salvador batch to create a network of Latin American countries committed to the regulation of digital assets.
CNAD President Juan Carlos Reyes stressed that these partnerships aim to enhance transparency, reduce the risk of financial crime, and support responsible growth within the sector.
By exporting its organizational experience, El Salvador puts himself as a model for the encryption management.
Comunicado | La Swittendencia de Valores Informa Que Las Criptomonedas no son registradas ni autorizadas por El BCP. Las Missmas No Tienten Curso Legal en el país ni cuntan con RSPALDO Del Estado. Más información: siv.bcp.gov.py/ ?page_id=171
PARAGUAY Illegal encryption activities
While Paraguay has not yet implemented a national standard framework, the new agreement indicates the country’s intention to increase its supervision of the digital asset industry.
Seprelad expressed his concerns about the risks associated with unorganized cryptocurrencies, especially about money laundering and other financial crimes.
Paraguay was a hot point of encryption due to its abundant hydroelectric power, as it attracts miners looking for low -cost energy.
However, the lack of clear regulations raised concerns about illegal activities, including unregistered mining operations and the use of encryption for illegal transactions.
Through cooperation with El Salvador, Paraguay is expected to gain an insight into effective organizational methods, which can form future policies for the encryption sector.
The encryption sector in Latin America
The last agreement highlights the growing regional shift towards more striking cryptocurrencies.
Since more Latin American countries explore organizational frameworks, cooperation between El Salvador and Paraguay can pave the way for a more coordinated approach to supervising digital assets throughout the continent.
Reyes stated that CNAD’s international partnerships aim to support the organized industries while expanding the scope of licensed encryption companies in El Salvador in global markets.
The agreement can lead to an increase in cross -border cooperation in tracing illegal activities for encryption and preventing them, which enhances financial integrity in both countries.
As Latin America continues to embrace digital assets, the success of these organizational partnerships can affect other countries to follow their example.
Although it is still unclear whether Paraguay will provide a similar license system, the Memorandum of Understanding indicates the country’s increasing interest in developing a more organized approach to encoding.
With the leadership of El Salvador this charge, Latin America may soon witness a more coordinated effort to budget encryption with financial security.
Beyond El Salvador and Paraguay enhances censorship censorship with a new organizational agreement that first appeared on Invezz
