May 2024 – The National Commission of Digital Assets (CNAD) of El Salvador and the Astana Financial Services Authority (AFSA) of Kazakhstan have signed a Memorandum of Understanding (MoU) to enhance cooperation and facilitate information exchange within the digital assets markets across their respective jurisdictions. This strategic partnership aims to foster cross-border collaboration, promote regulatory best practices, and strengthen the global digital finance ecosystem.
Strengthening Global Financial Ties
The MoU underscores the commitment of CNAD and AFSA to promote high-level communication and share critical information regarding financial markets. As regulatory bodies at the forefront of digital asset innovation, both institutions recognize the importance of collaborative efforts to navigate the challenges and opportunities presented by the rapid digitalization of finance.
Juan Carlos Reyes, President of CNAD, believes that signing this type of MoU represents a significant milestone in an increasingly borderless and globalized economy:
“We see AFSA as a pioneer in the digital assets regulatory industry, and the signing of this MoU is an important step in strengthening global regulatory authorities. Given that we work with technology that transcends geographical barriers, it’s crucial to recognize that the regulated businesses can impact each country differently. By creating agreements like this, we can ensure the adoption of best practices, identify bad actors, and, most importantly, achieve financial transparency according to global standards and the requirements of each country.”
A Vision for Innovation and Security
The collaboration between CNAD and AFSA will not only facilitate the sharing of regulatory insights but also support the development of innovative financial products and services. AFSA’s FinTech Lab (regulatory sandbox) has been instrumental in testing novel digital asset solutions, and this experience will be invaluable for CNAD as it continues to drive innovation in El Salvador’s digital asset sector.
Nurkhat Kushimov, CEO of AFSA, commented:
“The rapid flow of goods, services, people and finance across borders is testing the effectiveness and the capacity of domestic regulatory frameworks. Combined with increased globalization and digitalization, this pace of development presents policy makers and regulators with challenges that are difficult to deal with in isolation. Regulatory cooperation helps to bridge the gaps and align regulations for faster and safer transactions.”
Pioneering a Digital Future in El Salvador
CNAD has played a pivotal role in positioning El Salvador as a leader in the digital economy. Through its comprehensive regulatory framework, CNAD has cultivated a secure and transparent digital asset market, contributing significantly to the nation’s financial inclusivity and economic dynamism. Notable achievements include the launch of the $ESOY public offer by E-GRAINS S.A. DE C.V., backed by soybeans and marking a milestone in private issuances, and the historic Volcano Bond, the first digital asset issuance approved on December 11, 2023. Additionally, CNAD has led the way in real estate tokenization with the Hampton by Hilton project, the first tokenized hotel that is being built near the grounds of El Salvador’s International Airport. This groundbreaking project further enhances the country’s position as a regional leader in digital innovation.
About CNAD
The National Commission of Digital Assets (CNAD) of El Salvador is dedicated to overseeing and promoting the development of the digital assets’ ecosystem. CNAD’s primary objectives include ensuring compliance with regulatory standards, fostering innovation, and maintaining a secure environment for digital asset transactions. Through strategic initiatives and collaborations, CNAD is shaping the future of digital finance in El Salvador and beyond.
About AFSA
The Astana Financial Services Authority (AFSA) is the independent regulator of the Astana International Financial Centre (AIFC) in Kazakhstan. AFSA is responsible for the authorization, registration, recognition, and supervision of financial firms and market institutions in the AIFC, supporting the development of a robust digital assets’ ecosystem.
For more information, please contact:
Mónica Reyes
Presidential Assistant
Email: monica.reyes@cnad.gob.sv
Phone: +503 7012-4091
