The CNAD aims to initiate a cross -border regulation experience with the US Securities and Stock Exchange Commission (SEC). Although El Salvador’s current financial infrastructure was limited, CNAD, after accepting Bitcoin as an official currency in 2021, formed a unique regulation model. This model emphasizes that crypto assets are not subject to geographical restrictions in the international arena and that regulatory cooperation should not recognize a similar boundaries.
Crypto Money Regulations
CNAD’s aim is to develop the current regulation approach by taking advantage of the US SEC’s experiences. CNAD President Juan Carlos Reyes, in his statement, emphasized the importance of international cooperation.
Juan Carlos Reyes: “Crypto assets do not have geographical limits. Regulatory cooperation should be independent of international obstacles.”
In this context, the regulatory institutions in the United States evaluate the formation of a more flexible structure by taking the practices of El Salvador.
Regulation experience and applications
Different scenarios are proposed within the scope of the pilot program proposed by CNAD. These scenarios include a traditional financial license to obtain a crypto asset license and a CNAD licensed company makes limited scale tokenization presentations.
In the process of changing SEC’s approach to crypto asset regulation, CNAD’s suggestions are considered as an important reference point. Contrary to SEC’s approach to traditional finance perspective in the previous period, the dynamics of digital technology are taken into consideration. In addition, the feedback from the CNAD is given to SEC’s crypto assets.
In this process, CNAD has signed regulatory cooperation agreements with countries such as Argentina and Paraguay. These developments are considered as steps taken to get to know the crypto asset technology of international regulators better and to improve their practices.
Erica Perkin, who is in CNAD’s advisory group, presented information about the subject and included the following statements:
Erica Perkin: “The flexible framework of CNAD may benefit on issues where SEC has difficulty collecting data.”
The collected data will support US regulators to develop more harmonious approaches in the regulation of digital assets.
Developed by using CNAD’s experiences, pilot applications can prepare the ground for the implementation of similar regulations in other countries in other countries. Expectations that the regulatory area will be beneficial for both countries are supported by international cooperation and data sharing.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
