- El Salvador and Paraguay will work together to monitor digital asset providers and stop unlicensed crypto activities.
- Paraguay warns citizens to avoid unregulated crypto entities as it strengthens oversight with El Salvador.
- El Salvador continues to expand its crypto regulations while increasing its Bitcoin holdings before a financial deadline.
El Salvador and Paraguay have signed an agreement to improve oversight of digital asset service providers. The Memorandum of Understanding was signed on March 7 2025. It was signed between Paraguay’s Secretariat for the Prevention of Money Laundering and El Salvador’s National Commission of Digital Assets. The goal is to strengthen regulations in cryptocurrency activities.
Agreement to Enhance Crypto Regulations
Authorities will work together to monitor digital asset service providers and stop unauthorized operations. The agreement aims to detect and control unlicensed crypto activities. Officials want to improve regulations on money laundering and terrorist financing and the spread of dangerous weapons. The partnership will also help both countries share information to improve financial security.
The National Commission of Digital Assets of El Salvador noted that the agreement supports its mission to ensure financial integrity in a digital economy. Paraguay’s financial authority also believes sharing information is necessary to improve oversight in the crypto sector.
Paraguay’s Regulatory Stance on Crypto
Paraguay’s Central Bank has stated its position on digital assets. The institution highlighted that cryptocurrencies are not registered or authorized by the central bank or the country’s Superintendencia de Valores. The financial authority has advised citizens to avoid unregulated crypto entities.
The agreement with El Salvador shows Paraguay’s commitment to improving oversight. Details on a possible licensing system are still unclear. The partnership suggests efforts to make the industry more transparent.
El Salvador’s Expanding Crypto Role
El Salvador continues to take steps in cryptocurrency regulations. The country signed a similar agreement with Argentina’s Comisión Nacional de Valores in December 2024. The National Commission of Digital Assets is the main regulatory body for digital assets and it also issues Digital Asset Service Provider licenses.
El Salvador keeps investing in Bitcoin despite agreements with international financial institutions. The country holds 6111 Bitcoin worth about $507.88 million. The agreement with Paraguay is another step in El Salvador’s plan to expand its regulatory framework in the crypto industry.