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Peru Is Studying The Issue Of Legal Regulation Of Cryptocurrency In The Country

The increased interest in cryptocurrency has forced many countries to bring the issue of crypto regulation to the state level. Peru is no exception. How does the local regulator plan to resolve this “delicate matter”?

There is a crypto, but no law

Peru is one of those countries that have not yet decided on its position to the crypto industry at the state level. The issue of regulating cryptocurrency has been raised several times, but no consensus has yet been reached. Local news agency Gestion reported that regulators in Peru have begun investigating how cryptocurrency exchanges operate despite the COVID-19 pandemic and new financial challenges for the country.

Sergio Espinosa, an expert from the Peruvian Financial Intelligence Unit (UIF), believes that developing a regulatory framework for the crypto business is one of the priorities for the country. In an interview with Gestion, he noted:

We cannot ignore the existence of digital currencies, their distribution, and participation in trade. Our department continues to actively study virtual assets to understand how to build a legal policy for the crypto industry.

Espinoza believes that the lack of sufficient knowledge about the crypto sphere is precisely the factor that delays the withdrawal of cryptocurrency into the legal field of Peru. He called digital currency an uncharted territory that requires deep study and analysis.

First steps towards crypto regulation

Back in August, the Peruvian regulator announced the beginning of a detailed study of local cryptocurrency exchanges. The information received should become the foundation for determining the legal status, functioning, and mechanism of using cryptocurrency in the country. The main part of the research will last from 19 to 22 working days, and only after the final result is obtained, it will be possible to talk about future laws for the crypto industry in Peru.

It is quite possible that in the context of the spread of COVID-19, this issue will be resolved in a forced format. In Peru, as in many other countries, the pandemic has spurred the development of blockchain solutions that are designed to help people adapt to new realities.

To reduce the risk of infection, the Peruvian government also urges the population to switch to contactless payments for goods or services. What’s more, Congress passed legislation making electronic payments a public necessity in a pandemic.

The fact that countries introduce the concept of a “digital asset” or simply adopt regulations under the auspices of cryptocurrency regulation is a good factor. The sooner laws will be pass, the faster the cryptocurrency will enter the general circulation, and this will certainly affect its price.