Establish Crypto Exchange in Paraguay

[GENERAL] Name and surname of main applicant

Rodrigo Gonzalez

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

Individual

[GENERAL] Co-proposers and additional applicants

Yaqueline Escobar (Legal Advisor)

Fernando Orue (Legal Advisor)

[GENERAL] Requested funds in ada

100000

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

10

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language

Yes

[GENERAL] Summarize your solution to the problem (200-character limit including spaces)

We will create a cryptocurrency exchange in Paraguay, enabling users to trade cryptocurrencies like ADA using local currency Guaraní, unlocking new investors which provide more liquidity for cardano

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

No

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.”

No dependencies.

[GENERAL] Will your project’s output/s be fully open source?

Yes

[GENERAL] Please provide here more information on the open source status of your project outputs

The project will be fully open-source throughout its lifecycle. We will use the MIT License for our open-source repository, ensuring that all project outputs—including the exchange platform code, security protocols, and legal framework—are accessible for public use, modification, and distribution.

Our open-source repository will include:

• Platform Source Code: All code related to the exchange’s functionality, trading systems, and API integrations.
• Security Framework: Details on how KYC/AML processes and other security features are integrated into the platform.
• Legal Framework: Documentation outlining the regulatory and legal compliance required for operating a cryptocurrency exchange in Paraguay.

This open-source approach promotes transparency, collaboration, and innovation, allowing the global blockchain community to benefit from and contribute to the project.

[METADATA] Horizons

Financial Services

[SOLUTION] Please describe your proposed solution

This project aims to establish a legally registered crypto exchange in Paraguay, operating under a cooperative model that enables its members to trade both cryptocurrencies, like ADA, and Guaraní. The exchange will foster financial inclusion and transparency by offering users a secure and regulated environment to trade digital assets. The cooperative structure will ensure that the exchange is democratically governed, with decisions made collectively by its members, promoting a fair and equitable model for financial operations.

Key aspects of the solution include:

• Legal Registration: Formally registering the exchange as a cooperative under Paraguayan law.
• I will formally register the crypto exchange as a cooperative under Paraguayan law. This includes preparing all the necessary legal documentation, ensuring compliance with regulations for both cryptocurrencies and fiat currency transactions, and obtaining the required licenses to operate legally and transparently.
• Exchange Infrastructure: Building a secure and user-friendly platform for trading cryptocurrencies alongside Guaraní.
• I will build a secure, user-friendly platform where users can trade both cryptocurrencies, like ADA, and Guaraní. While the platform itself won’t use blockchain technology, it will integrate with cryptocurrency wallets to facilitate secure transactions. The platform will be designed with high security standards, including two-factor authentication and encryption, to protect user data and funds.
• Member Education: Providing training on cryptocurrency trading, exchange governance, and security practices.
• I will provide training and resources to cooperative members on how to use the platform, manage their wallets, and engage in cryptocurrency trading. I will also ensure members are educated on the governance structure and how they can actively participate in decision-making processes within the cooperative.

[IMPACT] Please define the positive impact your project will have on the wider Cardano community

The project will have a significant positive impact on the Cardano community by expanding the use of ADA and other cryptocurrencies in Paraguay, opening new avenues for real-world transactions and increasing liquidity in the ecosystem.

Value to the Cardano Community:

1. Wider ADA Adoption: The exchange will allow users in Paraguay to trade ADA alongside Guaraní, promoting ADA's use in daily transactions and investmen
2. Increased Liquidity: By providing a secure and legal platform for trading, the exchange will boost market liquidity for ADA, attracting both local and international trader
3. Integration with Paraguay's Economic Infrastructure: The exchange will facilitate the integration of cryptocurrencies with Paraguay’s growing import/export sector and renewable energy resources, driving further adoption of Cardano's blockchain technolog

Measuring Impact:

• Number of Users: Track the number of registered users on the platform and the volume of ADA transactions.
• Market Liquidity: Measure the trading volume of ADA on the exchange and the increase in liquidity provided to the Cardano ecosystem.
• New Partnerships: Track the partnerships formed with businesses, institutions, and investors as a result of the exchange’s operations.

Sharing Outputs and Opportunities:

• Open Source Repository: The platform’s code, security protocols, and legal framework will be shared through our open-source repository, making them available for other blockchain projects and exchanges to build upon.
• Reports and Case Studies: Detailed reports on the project’s development, lessons learned, and user adoption metrics will be published and shared within the Cardano community.
• Workshops and Webinars: We will host educational events to share the knowledge gained through building and launching the exchange, helping other projects leverage similar models. 

Through these efforts, the project will help position Cardano as a leader in blockchain innovation in Paraguay and beyond.

[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

Our team is highly capable of delivering the project with trust, transparency, and accountability, backed by years of experience in financial and legal institutions. We have a proven track record in managing complex financial projects and maintaining compliance with Paraguayan regulations.

Key Team Members:

• Rodrigo Enmanuel González Alonso and Fernando Orue are both members of one of the largest financial institutions in Paraguay

  

• Yaqueline Escobar brings expertise in legal governance and public policy, ensuring the legal aspects of the project meet national and international regulatory requirement

Processes for Managing Funds Transparently:

• Milestone-Based Fund Release: Funds will be released based on the achievement of key milestones, ensuring that the project progresses according to plan. Each milestone will be tied to specific deliverables such as platform development, legal compliance, and public engagement.

  

• Quarterly Financial Reporting: Detailed financial reports will be prepared and shared with the Cardano community, showing how funds are being allocated and used across legal, technical, and operational expenses.

• Third-Party Audits: Independent auditors will be engaged to review the project’s financial management and compliance, ensuring transparency and accountability at all stages of development.

Validation of Feasibility:

• Proven Financial Expertise: With Rodrigo and Fernando’s background in running one of Paraguay’s largest cooperatives, the team has deep experience in managing financial platforms and implementing regulatory-compliant operations.

  

• Legal and Regulatory Compliance: The project will follow Paraguayan financial laws and regulations, ensuring the exchange is built on a solid legal foundation.

  

• Pilot Testing: Before the public launch, the platform will undergo rigorous pilot testing with a select group of users to ensure it meets security, performance, and compliance standards.

These measures demonstrate our capability to manage this project effectively, ensuring both transparency and high levels of accountability throughout its development and operation.

[PROJECT MILESTONES] What are the key milestones you need to achieve in order to complete your project successfully?

Milestone 1: Legal Registration and Compliance Framework (25% of funds - 25,000 ADA)

Duration: Month 1-3

Objective: Establish the legal foundation and ensure the exchange complies with Paraguayan regulations for operating a crypto exchange.

Deliverables:

• Legal registration of the exchange with the relevant financial authorities in Paraguay.
• Development of a comprehensive legal framework for the exchange, including KYC/AML compliance.
• Securing necessary licenses and approvals from regulatory bodies.

Acceptance Criteria:

• Submission and approval of legal documentation by the Paraguayan financial regulatory authority.
• Obtained compliance approvals and licenses to operate the exchange legally.

Milestone 2: Platform Development and Security Integration (25% of funds - 25,000 ADA)

Duration: Month 4-6

Objective: Develop and launch the core platform infrastructure for cryptocurrency trading, integrating high-level security protocols.

Deliverables:

• Complete platform development, enabling users to trade cryptocurrencies, including ADA, alongside Guaraní.
• Implement KYC/AML and other necessary security features, such as encryption and two-factor authentication.
• Conduct internal testing of the platform’s functionality and security measures.

Acceptance Criteria:

• Platform fully operational with completed internal security testing.
• Security and compliance systems functional, including KYC/AML processes.

Milestone 3: Member Education and Public Launch (25% of funds - 25,000 ADA)

Duration: Month 7-9

Objective: Educate the public and members on how to use the platform and ensure a successful public launch.

Deliverables:

• Conduct workshops and educational webinars on how to use the exchange.
• Launch public awareness campaigns to attract new users to the exchange.
• Collect user feedback during the soft launch phase for potential improvements.

Acceptance Criteria:

• Completion of two public workshops and a successful public awareness campaign.
• Initial user registrations and transactions on the platform documented during the soft launch.

Final Milestone: Full Exchange Launch and Close-Out Report (25% of funds - 25,000 ADA)

Duration: Month 9

Objective: Officially launch the exchange for full public use and provide a comprehensive close-out report and video.

Deliverables:

• Full launch of the exchange with all features active and accessible to the public.
• Completion of a final project report and video summarizing the exchange’s development, user adoption metrics, and lessons learned.

Acceptance Criteria:

• Successful completion of the full public launch with active user trading and platform operations.
• Final project close-out report and video published and shared with the Cardano community.

[RESOURCES] Who is in the project team and what are their roles?

Key Team Members:

• Rodrigo Enmanuel González Alonso  

  Role: Project Lead & Legal Advisor  

  Credentials

  Responsibilities:  

• Lead the overall project, ensuring its alignment with Paraguayan legal and regulatory frameworks.
• Handle legal aspects, including securing approvals and managing compliance with financial regulations.
• Coordinate between stakeholders, government agencies, and the project team.

• Fernando Orue  

  Role: Legal Advisor & Compliance Expert  

Credentials

  Responsibilities:  

• Assist in drafting and implementing the legal framework for the crypto exchange.
• Ensure the project complies with Paraguayan financial and regulatory laws.
• Oversee the development and integration of KYC/AML protocols for user security and data protection.

• Yaqueline Escobar  

  Role: Legal Advisor & Public Relations Lead  

  Credentials

  Responsibilities:  

• Manage public engagement and educational outreach programs to raise awareness of the exchange.
• Handle media communications and build public relations to increase user adoption.
• Assist with drafting legal policies concerning user agreements and data security.

We are planning to recruit a full-stack developer with expertise in UI/UX design, backend development, and wallet integration. Specifically, the skills we are looking for include:

• UI/UX Design: Experience in building intuitive, user-friendly interfaces that enhance the overall user experience of the exchange platform.
• Backend Development: Expertise in server-side logic, database management, and ensuring the platform runs securely and efficiently.
• Wallet Integration: Strong understanding of cryptocurrency wallets and how to integrate them with the platform for seamless transactions.

We are actively engaging with relevant developers and team members to ensure they have the skills and capacity to support the project. I've already initiated discussions with potential candidates and relevant communities to ensure the necessary resources will be in place when the project begins. This ensures that the project will not face delays due to lack of technical expertise.

The team is already fully engaged, with a clear understanding of their roles and responsibilities, and has direct lines of communication to ensure smooth project execution. All team members have been consulted and are committed to supporting the success of the project.

[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources

Total Budget Requested: 100,000 ADA

Milestone 1: Legal Registration and Compliance Framework

Budget Allocation: 25,000 ADA

Duration: 2 months

• Legal Services: 15,000 ADA
• Legal fees for registration, securing licenses, and drafting the legal framework for the exchange.
• Compliance & Regulatory Approvals: 5,000 ADA
• Costs associated with obtaining regulatory approvals, including compliance with Paraguayan KYC/AML laws.
• Administrative Costs: 5,000 ADA
• Document preparation, internal reviews, and logistics for meetings with regulatory bodies and legal consultations.

Milestone 2: Platform Development and Security Integration

Budget Allocation: 25,000 ADA

Duration: 2 months

• Platform Development: 15,000 ADA
• Building the crypto exchange platform with secure trading functionality for ADA and Guaraní.
• Security & Compliance Setup: 5,000 ADA
• Implementation of KYC/AML processes and integration of secure digital wallets for users.
• Internal Testing & Audits: 5,000 ADA
• Conducting internal testing of platform features, including security protocols, and performing a code audit to ensure the platform’s safety and compliance.

Milestone 3: Member Education and Public Engagement

Budget Allocation: 25,000 ADA

Duration: 2 months

• Workshops and Training: 12,000 ADA
• Hosting public workshops and educational sessions on cryptocurrency trading and security.
• Public Relations & Marketing: 8,000 ADA
• Public awareness campaigns to build user base, including press releases, social media promotions, and community outreach.
• Promotional Materials: 5,000 ADA
• Creating educational guides, advertisements, and marketing collateral for public engagement.

Final Milestone: Exchange Launch and Project Close-Out

Budget Allocation: 25,000 ADA

Duration: 1 month

• Public Exchange Launch: 12,000 ADA
• Finalizing the exchange platform for public use, ensuring full functionality and integration with cryptocurrency wallets and KYC/AML systems.
• Project Documentation and Final Report: 8,000 ADA
• Preparation of a comprehensive report detailing project progress, user adoption metrics, and lessons learned.
• Close-Out Video & Marketing: 5,000 ADA
• Production of a video summarizing the project’s impact and next steps, along with marketing for the exchange's official launch.

[VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

This project will bring significant value to the Cardano ecosystem by onboarding an entirely new country’s liquidity to the platform, far exceeding the initial investment. By establishing a legally registered crypto exchange in Paraguay, we are creating a secure and compliant environment for trading both ADA and Guaraní, tapping into Paraguay’s financial markets and user base.

As more users adopt the exchange, liquidity from both fiat (Guaraní) and ADA will flow into the Cardano ecosystem. This not only increases transaction volume but also creates new opportunities for growth, staking, and decentralized applications, directly benefiting the broader Cardano community.

The cooperative model ensures that the exchange will be governed by its members, driving long-term engagement and fostering trust, which will lead to sustained growth in user adoption and trading volume. Over time, the new influx of liquidity and users from Paraguay will generate far more economic activity for the Cardano network than the initial 100,000 ADA investment, making this project a highly impactful contributor to the ecosystem.