KeyTakeaways:
- El Salvador and Paraguay enhance crypto oversight to target unlicensed operations.
- The agreement aims to combat financial crimes, including money laundering and terrorism.
- El Salvador accelerates Bitcoin acquisitions before IMF’s compliance deadline.
On March 7, 2025, El Salvador and Paraguay signed a Memorandum of Understanding (MOU) to enhance collaboration in regulating digital assets. The agreement, which was finalized between Paraguay’s Secretariat for the Prevention of Money Laundering (SEPRELAD) and El Salvador’s National Commission of Digital Assets (CNAD), aims to bolster the oversight of digital asset service providers in both countries.
The agreement reinforces the regulatory framework surrounding cryptocurrency activities and aims to prevent unauthorized crypto operations in both nations. SEPRELAD and CNAD will work closely to monitor and regulate digital asset services, particularly those not registered or licensed. This alliance is expected to strengthen cross-border efforts to combat financial crimes, including money laundering, the financing of terrorism, and the proliferation of weapons of mass destruction.
CNAD President Juan Carlos Reyes García emphasized the importance of cross-border cooperation in maintaining financial integrity in the digital economy. He noted that the partnership would enhance innovation and help maintain the financial sector’s security and integrity across both countries. The move comes with rising global concerns over digital asset regulation and financial crime prevention.
Paraguay’s Position on Crypto Regulation
Paraguay’s Central Bank has recently reiterated its stance on cryptocurrencies, advising citizens against engaging with unregulated crypto entities. The bank clarified that Paraguay’s central authorities do not authorize or register digital assets.
This caution aligns with the new regulatory agreement, which aims to increase oversight and transparency in the country’s digital asset sector. While it is unclear whether Paraguay will implement a licensing system similar to El Salvador’s, the partnership with El Salvador indicates a step towards more stringent crypto market oversight.
El Salvador’s Continued Bitcoin Acquisition Strategy
El Salvador, which holds 6,111 BTC valued at approximately $508 million, has continued to increase its Bitcoin holdings despite prior agreements with the International Monetary Fund (IMF) limiting such purchases.
Read Also: President Nayib Bukele Shades the IMF, Says El Salvador’s Bitcoin Adoption is Never Stopping
The IMF set terms in a $3.5 billion financial agreement, restricting government Bitcoin acquisitions. However, President Nayib Bukele remains steadfast in his belief that the country will continue accumulating Bitcoin. El Salvador recently purchased 40 BTC over the past 30 days, accelerating its acquisitions ahead of the IMF’s compliance deadline in July 2025.
El Salvador’s regulatory body for digital assets, CNAD, has also been active in ensuring the country’s proper licensing of digital asset service providers. This commitment to securing digital financial markets aligns with the country’s broader strategy of positioning itself as a leader in digital asset regulation in the region.
Read Also: El Salvador Agrees to Pause Public Sector Bitcoin Acquisitions Under IMF Deal
