PARAGUAY TRENDS AND DEVELOPMENTS Contributed by: Federico Valinotti, Andrés Nasser, Álvaro Rojas, Vivian Maldonado and Juan Manuel Ros, BKM - Berkemeyer
Paraguay’s new Capital Markets and Products Law (No 7572/2025) The new Capital Markets and Products Law (No 7572/25) was passed in November 2025, represent - ing a unified framework modernising the regulation of securities and products markets. It consolidates over - sight under the Central Bank of Paraguay (CBP) via the Superintendency of Securities (SIV) to strengthen investor protection, transparency and systemic risk mitigation. The reform introduces five core changes. • Unified legislation – it merges previous laws on securities, funds, rating agencies and securitisa - tion, for coherence and efficiency. • Expanded scope – it covers securities and prod - ucts, enabling derivatives trading and standardised benchmarks. The previous legislation focused on securities, but the new Law integrates the ecosys - tem for products, custody, clearing and settlement, and derivatives, with prudential and collateral rules. • Financial innovation – it recognises distributed ledger technology (DLT), cross-listing and interna - tional integration. The previous framework did not contemplate these features with the level of detail and authorisations now introduced. • Integrated infrastructure – it harmonises rules for funds, securitisation, custody and clearing, with consistent governance and risk standards. The Law initiates a single framework for funds, securiti - sation and post-trade infrastructure. • Enhanced governance – it strengthens minority shareholder rights, disclosure and enforcement, adding criminal and disciplinary measures. The CBP Board will issue technical regulations on licensing, prudential margins, reporting, custody, clearing, derivatives and governance. Current rules apply until new ones are enacted. This structural reform aligns Paraguay with global standards, reduces regulatory friction and supports technology adoption. Its success depends on timely rule-making and risk- based supervision. Payments and market infrastructure On 27 June 2025, Paraguay promulgated Law No 7503, replacing the 2012 payments law and effec -
recognises counter-security requirements and author - ises inaudita parte measures in urgent, justified cases. Judicial courts must enforce these decisions without reviewing their merits and without entertaining oppo - sition. The arbitral award’s effectiveness is reinforced, main - taining annulment as the sole challenge, with strict - ly interpreted grounds. A new annulment ground is introduced for late issuance of the award, but only where the parties or the applicable arbitral rules have expressly provided for it. Judicial recognition (exequa - tur) for domestic awards is eliminated, allowing direct execution. The regime for foreign arbitral award recognition and enforcement is updated, aligning with the 1958 New York Convention and international best practices. In addition, the Law provides a transitional regime for pending arbitrations (generally preserving the appli - cation of Law No 1879/2002 to proceedings already underway prior to its entry into force, unless otherwise agreed, while subjecting awards made after its entry into force to the new rules on annulment, correction and enforcement), and an automatic three-year tem - porary residence and free visa for foreign arbitrators appointed in arbitrations seated in Paraguay, imple - mented by the National Directorate of Migration. Mediation will continue to be governed by Law No 1879/2002, which will stay in force solely for mediation and will be renamed the “Mediation Law”. This Law, along with additional provisions, con - solidates a modern, digital and autonomous arbitral framework focused on efficiency, trust and predict - ability. Its entry into force positions Paraguay as a reliable and competitive seat for domestic and inter - national arbitration, strengthening legal certainty and investment attractiveness through a solid, predictable alternative dispute resolution system. It is noted, however, that the draft law awaits promul - gation and publication by the Executive Branch; until then, Law No 1879/2002 remains fully in force.
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