The Peruvian Congress has received a bill that outlines a legal foundation for crypto. It will now debate the proposal and decide on its approval. The document is on the Peruvian legislature’s official website.
The bill is to regulate crypto-associated businesses
The proposal looks at different areas of Peru’s ecosystem. In addition, José Elías Ávalos introduce the project no known as the Framework Law for the Commercialization of Crypto assets. Ávalos drafts the bill to regulate businesses that offer crypto services like digital wallets and Bitcoin exchanges.
The draft is the country’s first attempt to control digital assets. It defines various aspects of the crypto industry, including cryptography, blockchain, virtual assets service providers, and crypto-assets.
The use of cryptocurrency in Peru is rising, especially in the last year, where it increased by 600%. Cryptocurrency transactions rose by 613% in the first half of 2021 compared to 2022. The proposal clearly defines cryptocurrency and the responsibility of virtual asset service providers. It also legalizes the use of digital assets by companies.
Details of the proposal
The new bill emphasizes that purchasing crypto is the complete responsibility of owners and buyers. Furthermore, it states the need for operational standards for crypto transactions. These standards could include creating a public register of ecosystem-relayed service providers, which will enable users to confirm if a crypto-relates business is registered in the country.
The country will require virtual assets service providers to follow its regulations. They will also have to inform customers that they are not a Peruvian legal tender. Furthermore, they will warn customers that government regulations do not negate any risk.
The bill also explains that it will be necessary to alert relevant authorities on cryptocurrency’s suspicious activities. Moreover, Bitcoin-related firms will have to register with Peru’s Superintendency of Banking and Insurance.
The bill’s approval, which regulates the market, could allow people waiting for a framework for crypto-related activities to adapt it. It could also enable people to incorporate or create companies using cryptocurrency.
Peru is not the first country in Latin America to develop legislation to regulate digital assets. Others include Venezuela, Paraguay, and Brazil. El Salvador, on the other hand, had made bitcoin a metal tender.