Peru is all set to introduce its first crypto regulation in the near future. Let us dig deeper into the details of the regulations.
Peru’s congress has held discussions on a new legislation on Cryptocurrencies. The legislation’s name is ‘The Crypto Asset Marketing Framework’. This new regulation will give rigid definition to crypto assets and will also make clear the duties of Crypto Exchanges. Also, the new framework will make the use of digital assets legal, purchasable and hold-able by companies. The discussion on the bill was on 20th of the last month of 2021.
A member of political party, Podemos Peru, Jose Luis Elias Avalos, introduced the draft of the framework in the parliament. This introduction of this law was on 10th December. It is worth noting that this is the first attempt by Peru to regulate Cryptocurrencies. The draft talks about the various concepts related the crypto environment, such as crypto assets, Cryptography, Exchanges and Blockchain network.
Salient features of the law:
Public registry for virtual asset service providers(exchanges), that an investor can view to know that whether a virtual asset service provider or VASP can do business in the country. And each exchange or VASP has to abide the set of laws in the framework.
Compels the Exchanges to make sure their users know that Cryptocurrencies are not legal tender in Peru. Further, these exchanges will inform the investors that the government does not guarantee against the risks that come with crypto trading and investing.
The law allows the use of Crypto assets to create and incorporate companies. Additionally, it will help these companies get a legal base for holding Cryptocurrencies in Peru.
Additionally the law has a framework for defining and valuating these Crypto assets under certain circumstances:
First case : The value of crypto asset must be put on a record at the time of the inception of the company.
Second case : If the company opts to sell these assets, they are seen as inventory assets.
Other conditions : In other conditions cryptocurrencies will be seen as property or intangible assets.
Latin American presence of Cryptocurrencies
Many Latin American countries have had discussions in their Parliaments on Cryptocurrencies. El Salvador famously became the first ever country to adopt Bitcoin as a legal tender. Other countries such as Brazil, Paraguay and Venezuela had adoption of Crypto legislation to regulate them.
Peru is all set to introduce its first crypto regulation soon. Soon, this law might act as a roadmap for various countries across the world to draft a regulatory bill for their own. Hopefully, this will make a positive impact on Crypto industry.
Hope you liked this article. If you liked this article and would like to read more articles like this, do visit our website. If you want to show your appreciation towards us, please consider subscribing.