Peru and Cryptocurrency

Peru Cryptocurrency Laws
Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology

Unidad de Inteligencia Financiera del Perú (UIF) superintendent Sergio Espinosa, a Peruvian regulator authority representative, said on October 26 that Peru is open to the crypto industry but is looking to find ways to regulate it on a national level[1]. In 2018, Peru announced that it intended to issue a virtual currency known as PeruCoin with a value amount roughly equivalent to $10USD. However, not much has happened since the announcement and many believe it to have been an investment scam. Such concerns have given rise to a new wave of attention regarding cryptocurrencies in Peru. The superior judge of the Peruvian judicial system, Dr. Bonifacio Meneses Gonzales, said in an interview with JusticaTV[2] that he has asked Congress to regulate cypto in order to combat money laundering. The judge explained that the adoption and trading of crypto is a growing trend in Peru, but criminal uses have tarnished the reputation of the Peruvian crypto community. The honorable Dr. Gonzales lamented that “because [cyrpto] is out of our jurisdiction, digital assets can be used in shady businesses.” The shady business facially inspiring the push for crypto regulation is the threat of money laundering through cryptocurrency. Dr. Gonzales explained that such crimes is especially serious in Peru due to Legislative Decree No. 1106 and the Plenary Agreement 01-2017 of the Supreme Court of Justice, which renders money laundering an autonomous crime in Peru.

P.S. Insights on Cryptocurrency Legal Issues

Most jurisdictions and authorities have yet to enact laws governing cryptocurrencies, meaning that, for most countries, the legality of crypto mining remains unclear.

Under the Financial Crimes Enforcement Network (FinCEN), crypto miners are considered money transmitters, so they may be subject to the laws that govern that activity. In Israel, for instance, crypto mining is treated as a business and is subject to corporate income tax. In India and elsewhere, regulatory uncertainty persists, although Canada and the United States are relatively friendly to crypto mining.

However, apart from jurisdictions that have specifically banned cryptocurrency-related activities, very few countries prohibit crypto mining.

Our Freeman Law Cryptocurrency Law Resource page provides a summary of the legal status of cryptocurrency for each country across the globe with statutory or regulatory provisions governing cryptocurrency.  The globe below provides links to country-by-country summaries:

Podcast:

The Freeman Law Project – Cryptocurrency Regulation and Taxation: A Brief Primer

Is cryptocurrency legal in Peru?

Do you have questions about cryptocurrency, digital currencies, or blockchain technology?
Freeman Law can help with digital currencies, tax planning, and tax compliance. Contact us now to schedule a consultation or call (214) 984-3410 to discuss your cryptocurrency and blockchain technology concerns.


[1] Gestion, “SBS realiza diagnóstico sobre uso de los bitcoins en Perú para su posterior regulación”, Karen Guardia, October 26, 2020, https://gestion.pe/economia/sbs-realiza-diagnostico-sobre-uso-de-bitcoins-en-peru-para-su-posterior-regulacion-noticia/?ref=gesr

[2] JusticaTV, Enfoque Juridico: Entrevista al Dr. Bonifacio Meneses Gonzales, https://youtu.be/wr3-z8dpqN0

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