Draft Peru submitted to the Currency Law

In December, Peru launched a new draft encrypted monetary asset law to regulate the use of encrypted currency in the country. In addition to defining what encrypts monetary assets and identifying virtual asset service providers (VASP), the draft is also legalized to “use Encrypted monetary assets to set up companies and allow companies to hold this asset”.

Peru initiated the first encrypted currency supervision attempt

The Peru National Association put forward a new legislation called “Encrypted Asset Marketing Framework”, numbered N ¡ã 1042/2021-Cr, which is the first attempt in encrypted monetary supervision. The project was proposed by “Podemosperu” membership member Jose Luis Eliaasavalos, which defines several key concepts in the field of encryption, including encrypted assets, virtual asset service providers (VASP), block chains and cryptography.

The law also proposes to create a public registry for VASP – users can query at any time to find out if an exchange or platform has been registered in Peru. In addition, it also stipulates that each VASP must comply with the legal operation of the country.

The draft requires that these companies inform customers in service contracts, Peru does not think encrypting currencies is a statutory currency, and the government’s regulation of these assets does not constitute a guarantee of the risk of encrypted currency transactions.

Encrypted currency as a tool for creating a company

The proposal further pointed out that encrypted monetary assets can be used to create and set up companies and provide legal basis for these companies to hold encrypted currencies in Peru. In the first case, the value of the encrypted currency should be recorded when the company was established. In the second case, if the company intends to sell them, the encrypted currency should be considered an inventory asset. In other cases, they should be considered as property or intangible assets.

Peru is another Latin American country that joins encrypted currency supervision trend, followed by Brazil, Paraguay, Venezuela and Salvador – these countries are developing (or have already developed) laws for encrypted currencies. However, the proposed draft in Peru is not as a statutory currency as the “Bitcoin Law” in Salvador. Salvador’s “Bitcoin Law” was taken into effect last year, and the NAYIBBUKELE is raised – he also predicts that there will be two new countries to use Bitcoin as a legal currency this year.