In December of last year, Peru introduced a draft of a new cryptocurrency assets law aimed at regulating the cryptocurrency interactions that have taken place in the country. In addition to defining what is an encrypted asset and determining the responsibilities of a virtual asset service provider (VASP), the draft law also attempts to legalize the use of assets so that they can be incorporated into and held by the company.

Peru launches its first cryptocurrency supervision attempt

The Peruvian Congress has proposed a new draft legislation called “Crypto Asset Marketing Framework”, numbered N° 1042/2021-CRThis is the country’s first attempt to regulate cryptocurrency interaction. The project was proposed by Jose Luis Elias Avalos, a member of the “Podemos Peru” parliamentary panel, on December 10th. It defines several key concepts in the cryptocurrency world, including encrypted assets, virtual asset service providers (VASP), blockchain and cryptography learn.

The law also proposes to create a public registration for VASP, and users can consult at any time to find out whether the exchange or platform has registered to conduct business in Peru. In addition, it also stipulates the conditions that each VASP must comply with to operate legally in the country.

The draft forces these companies to inform in their service contracts to users that Peru does not consider the fiat currency of cryptocurrencies, and that the government’s supervision of these assets does not constitute a guarantee of the risks that may be brought to users by using cryptocurrency operations.

Encryption as a tool to start a company

The law further believes that crypto assets can be used to create and merge companies and provide a legal basis for these companies to hold crypto in Peru. In the first case, the proposal states that the value of cryptocurrency should be recorded when the company is established. In the second case, the draft explains that if the company intends to sell them, cryptocurrencies should be treated as inventory assets. In other respects, they should be treated as property or intangible assets.

Peru is another Latin American country that has joined the trend of cryptocurrency regulation, lagging behind countries like this one Brazil, Paraguay, Venezuela, and Savior, Is enacting or has enacted laws specific to cryptocurrencies. However, the proposed draft does not consider Bitcoin as legal tender like the “Bitcoin Law” in El Salvador. The law came into effect last year and was promoted by El Salvador’s President Nayib Bukele, who also predicted that two new countries will make Bitcoin legal tender this year.

What do you think of Peru’s newly proposed law to regulate crypto assets? Tell us in the comments section below.

Sergio Goshenko

Sergio is a cryptocurrency journalist based in Venezuela. He described himself late and entered the crypto space when prices rose in December 2017. With a background in computer engineering, living in Venezuela, and socially affected by the cryptocurrency boom, he offers a different perspective on the success of cryptography and how it can help the unbanked and underserved people.

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