El Salvador and Paraguay sign crypto regulation agreement

Paraguay’s Secretaría de Prevención de Lavado de Dinero o Bienes (SEPRELAD) and El Salvador’s Comisión Nacional de Activos Digitales (CNAD) signed a Memorandum of Understanding (MOU) on March 7, 2025, to enhance cooperation in regulating digital asset service providers. The agreement, formalized by SEPRELAD Minister Liliana Elizabeth Alcaraz Recalde and CNAD President Juan Carlos Reyes García, aims to strengthen oversight of the crypto sector in both countries.

According to SEPRELAD’s official website, the MOU focuses on promoting mutual cooperation and information exchange between the two institutions. It will help detect unlicensed crypto operations and reinforce anti-money laundering (AML) measures, including efforts to combat terrorist financing and the proliferation of weapons of mass destruction.

The agreement also seeks to improve the regulatory framework for digital assets by leveraging CNAD’s expertise in overseeing crypto service providers. SEPRELAD emphasized the importance of such partnerships in proactively supervising a borderless market, fostering innovation, and safeguarding financial integrity in both nations.

This marks El Salvador’s second major crypto regulatory agreement in three months, following a similar pact with Argentina in December 2024. It underscores the country’s leadership in establishing robust frameworks for digital assets while supporting Paraguay’s efforts to enhance its own regulatory capabilities.