Draft law for cryptocurrency presented in Peru - regulation

In December, a draft of a new law on cryptocurrency plants was presented in Peru, which aims to regulate the cryptocurrency interactions already taking place in the country. The draft law not only aims at the definition of crypto-assets and the duties of virtual asset service providers (vasps), but also aims to legalize the use of assets for founding and property by companies.

Peru starts the first attempt to regulate cryptocurrencies

A new draft law called "Cryptoasset Marketing Framework" was in the Peruvian congress under number No. 1042/2021-CR , in the first attempt by the country to regulate interactions with cryptocurrencies. The project, which was presented on December 10th by Jose Luis Elias Avalos, a member of the "Podemos Peru" parliamentary group, defines several key concepts in the world of cryptocurrencies, including crypto-assets, virtual asset service provider (vasps), blockchain and cryptography.

The law also suggests the establishment of a public register for vasps, which users can consult at any time to find out whether a stock exchange or a platform is registered in order to do business on Peruvian soil. In addition, it determines the conditions that every VASP has to meet in order to be legally active in the country.

The draft obliges these companies to point out in their service contract with the user that Peru does not consider cryptocurrencies as a legal means of payment and that the monitoring of these assets by the government does not guarantee the risks that the operation with cryptocurrencies for users can bring.

crypto as a tool for founding the company

The law also provides that crypto-assets could be used to found and found companies, and offers these companies a legal basis for keeping crypto in Peru. In the first case, the proposal stipulates that the value of the cryptocurrencies should be recorded at the time the company was founded. In the second case, the draft explains that cryptocurrencies should be considered inventory if the company intends to sell them. In other considerations, they should be considered property or intangible assets.

Peru is another LATAM country that has jumped on the train of cryptocurrency regulation, behind countries like brazil , venezuela , and El Salvador , which have been working on cryptocurrency-specific laws or have already established. However, the proposed design does not take Bitcoin into account as a legal means of payment, as does the “Bitcoin Act” by El Salvador. The law came into force last year and was promoted by El Salvador's President Nayib Bukele, who also predicted that two new countries would make Bitcoin a legal means of payment this year.

What do you think of the newly proposed law to regulate crypto assets in Peru? Tell us in the comment area below.

sergio goschenko

sergio is a cryptocurrency journalist based in Venezuela. He described himself as late at the game and entered the cryptosphere when the price increase took place in December 2017. With a background in computer technology that lives in Venezuela and is affected by the cryptocurrency boom at the social level, it offers a different view of the crypto success and how it helps the non-banks and under-sector.

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