A new cryptocurrency asset law was introduced in Peru in December, seeking to regulate cryptocurrency interactions that are already happening in the country. The bill, in addition to defining what a crypto asset is and establishing the obligations of virtual asset service providers (VASPs), also seeks to legalize the use of assets to be incorporated and held by enterprises.
Peru launches first attempt to regulate cryptocurrency
A new bill called the “Cryptoasset Marketing Framework” has been presented to the Peruvian Congress as No. 1042/2021-CR, in the country’s first attempt to regulate cryptocurrency interactions. The project, which was presented on December 10 by Jose Luis Elias Avalos, member of the parliamentary group “Podemos Peru”, defines several key concepts in the world of cryptocurrency, including crypto assets, asset service providers (VASP), blockchain and cryptography. .
The law also proposes the creation of a public register of VASPs, which users can consult at any time to find out if a stock exchange or platform is registered to do business on Peruvian soil. In addition, it establishes the conditions that each VASP must meet to operate legally in the country.
The project requires these companies to inform, in their user services contract, that Peru does not consider cryptocurrencies to be legal tender, and that government monitoring of these assets does not constitute any guarantee against the risks. that cryptocurrency mining can bring to users. .
Crypto as a tool for founding businesses
The law further considers that crypto assets could be used to form and incorporate companies, and provides a legal basis for such companies to hold cryptocurrencies in Peru. In the first case, the proposal specifies that the value of cryptocurrencies must be recorded when the company is incorporated. In the second case, the project explains that if the company intends to sell them, the cryptocurrencies should be considered inventory assets. In other considerations, they should be considered property or intangible assets.
Peru is another Latam country that has jumped on the cryptocurrency regulatory bandwagon, behind countries like Brazil, Paraguay, Venezuela, and El Salvador, which are working on – or have already established – specific laws. cryptocurrencies. However, the proposed project does not consider the legal tender of bitcoin, as does El Salvador’s “Bitcoin Law”. The law came into effect last year, pushed by Salvadoran President Nayib Bukele, who also predicted that two new countries would make bitcoin legal tender this year.
What do you think of the proposed new law to regulate crypto assets in Peru? Tell us in the comments section below.
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