El Salvador and Paraguay join forces for stronger crypto regulation

El Salvador continues its rise as a pioneer in cryptocurrency adoption and solidifies its leadership role in Latin America. In this spirit, the country has just signed a strategic agreement with Paraguay to harmonize regulations in the digital asset sector. This initiative aims to combat money laundering and terrorist financing, while promoting innovation and financial transparency ( Source: CoinDesk , 2025 ).

A partnership to support the crypto ecosystem

With its expertise in cryptocurrency regulation, El Salvador is keen to share its experience with other nations. This is reflected in the signing of an agreement with Paraguay, formalized by El Salvador's National Digital Asset Commission (CNAD) and Paraguay's Secretariat for the Prevention of Money or Property Laundering (SEPRELAD) ( Source: Reuters , 2025 ).

According to Juan Carlos Reyes, president of the CNAD, the main objective of this collaboration is to control, supervise, and regulate providers of services related to digital assets. He stated:

“El Salvador continues to share its trajectory and success in the digital asset space, strengthening international alliances to build a more connected and transparent future. This agreement not only fosters innovation, but also ensures financial integrity in a borderless economy.” ( Source: Cointelegraph , 2025 )

An international commitment to a secure digital economy

Under the agreement, SEPRELAD and CNAD will work together to identify and monitor unauthorized crypto transactions in Paraguayan territory. This cooperation is part of a series of similar initiatives led by El Salvador, including a partnership signed with Argentina last December ( Source: BBC , 2025 ).

El Salvador, the first country to adopt Bitcoin as legal tender, continues to inspire other nations looking to structure their cryptocurrency regulations. The CNAD, created specifically to regulate digital assets, is now a model for governments seeking to establish a legal framework adapted to this rapidly expanding industry ( Source: Forbes , 2025 ).

For Paraguay, this collaboration marks a significant step forward in the fight against money laundering and terrorist financing. Thanks to Salvadoran expertise, the country will be able to strengthen its control over cryptocurrency-related activities and establish stricter and more effective regulation ( Source: Reuters , 2025 ).

A strong strategy in the face of international pressure

This agreement with Paraguay confirms Salvadoran President Nayib Bukele's commitment to keeping his country at the forefront of cryptocurrency regulation, despite the reluctance expressed by institutions such as the International Monetary Fund (IMF) ( Source: CoinDesk , 2025 ). By structuring a rigorous legal framework and establishing strategic partnerships, El Salvador intends to promote a secure and transparent digital economy, while reducing the risks associated with illicit activities.

This cooperation marks a new step in the international regulation of cryptocurrencies and could encourage other countries to follow this path to better regulate this rapidly changing sector ( Source: Cointelegraph , 2025 ).