Peru introduces its first cryptocurrency regulation
A new legislation called Crypto Asset Marketing Framework was introduced in the Peruvian Congress, on December 20, 2021. The draft aims to regulate the cryptocurrency businesses in the country. The new legislation would also define crypto assets and clearly define the duties of virtual asset service providers (VASPs). Furthermore, the legislation aims to legalize the use of digital assets to incorporate and to be held by companies.
This is the first attempt of the country to regulate cryptocurrency interactions. The legislation was introduced by a member of a parliamentary group, Podemos Peru, Jose Luis Elias Avalos, on December 10. The draft includes and defines several important concepts in the cryptocurrency world, including crypto assets, virtual asset service providers (VASPs), blockchain, and cryptography.
Perus new draft legislation aims to achieve the following regulations in the crypto market:
– Creation of a public registry for VASPs, that users can consult anytime to find out if an exchange or a crypto platform is registered to do business in the country.
* Wherein, each VASP must follow the regulations to operate legally in Peru.
– Compelling the companies to inform in their contract of services to the user that cryptocurrencies are not legal tender in Peru.
* Further the companies have to inform users that regulation of these assets by the government does not guarantee against the risks that come with using cryptocurrencies.
– Crypto assets to be used to create and incorporate companies, and provide a legal base for these companies for holding crypto in Peru.
The draft provides definition and valuation of the cryptocurrencies in these conditions:
* In the first case, the value of cryptocurrencies should be recorded at the moment of constitution of the company.
* In the second case, if the company intends to sell them, cryptocurrencies should be considered inventory assets.
* In other conditions, they should be considered property or intangible assets.
Other Latin American countries, Brazil, Paraguay and Venezuela have established crypto legislations in their countries besides El Salvador, who has adopted Bitcoin as legal tender in 2021.
(For the latest crypto news and investment tips, follow our Cryptocurrency page and for live cryptocurrency price updates, click here.)
This is the first attempt of the country to regulate cryptocurrency interactions. The legislation was introduced by a member of a parliamentary group, Podemos Peru, Jose Luis Elias Avalos, on December 10. The draft includes and defines several important concepts in the cryptocurrency world, including crypto assets, virtual asset service providers (VASPs), blockchain, and cryptography.
Perus new draft legislation aims to achieve the following regulations in the crypto market:
– Creation of a public registry for VASPs, that users can consult anytime to find out if an exchange or a crypto platform is registered to do business in the country.
* Wherein, each VASP must follow the regulations to operate legally in Peru.
– Compelling the companies to inform in their contract of services to the user that cryptocurrencies are not legal tender in Peru.
* Further the companies have to inform users that regulation of these assets by the government does not guarantee against the risks that come with using cryptocurrencies.
– Crypto assets to be used to create and incorporate companies, and provide a legal base for these companies for holding crypto in Peru.
The draft provides definition and valuation of the cryptocurrencies in these conditions:
* In the first case, the value of cryptocurrencies should be recorded at the moment of constitution of the company.
* In the second case, if the company intends to sell them, cryptocurrencies should be considered inventory assets.
* In other conditions, they should be considered property or intangible assets.
Other Latin American countries, Brazil, Paraguay and Venezuela have established crypto legislations in their countries besides El Salvador, who has adopted Bitcoin as legal tender in 2021.
(For the latest crypto news and investment tips, follow our Cryptocurrency page and for live cryptocurrency price updates, click here.)
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