El Salvador has taken another step in its pioneering journey in the digital asset space, signing a mutual agreement with Argentina to bolster their respective crypto industries. On Dec. 11, Juan Carlos Reyes, president of El Salvador’s National Commission of Digital Assets (NCDA), announced the partnership with Roberto Silva, head of Argentina’s National Securities Commission (CNV).
Mutual Collaboration in Crypto Regulation
The collaboration aims to leverage El Salvador’s three years of regulatory expertise and Argentina’s innovative blockchain ecosystem to create a highly productive alliance. “We believe the combination of El Salvador’s early regulatory experience and Argentina’s technological innovation will yield great results for both nations,” Reyes said.
The agreement facilitates the sharing of regulatory frameworks, technical expertise, and information on market trends. Reyes stated that several Argentine companies are already operating legally in El Salvador.
Global Outreach
Beyond this agreement, El Salvador is in discussions with over 25 other countries to establish similar collaborations. Recognizing its unconventional regulatory approach, Reyes emphasized that these partnerships are designed to foster cross-border learning and effective regulation in the crypto industry.
To support these efforts, El Salvador has assembled a dedicated team of over 20 Bitcoin experts and crypto professionals to guide and assist international collaborations. Reyes advised regulators worldwide to act promptly in setting up robust frameworks, warning that delays could allow scams and illicit activities to proliferate.
“Waiting too long to regulate creates vulnerabilities, making it easier for bad actors to exploit the system,” he said, urging nations to adopt Financial Action Task Force (FATF) recommendations and embrace global cooperation.
More Agreements Ahead
El Salvador is reportedly nearing the finalization of two additional agreements with unnamed countries, demonstrating its commitment to becoming a global leader in digital asset regulation. Reyes emphasized the importance of knowledge sharing, stating, “Our experience has shown that cross-border collaboration is vital for creating a secure and effective regulatory environment.”
Since adopting Bitcoin as legal tender in 2021, El Salvador has been at the forefront of crypto innovation.
