Some members of the cryptocurrency industry in Peru say that the initiative has formal and substantive problems. The project establishes that the exchanges that operate must be constituted as legal entities domiciled in Peru. The document is contrary to what is established in the Free Trade Agreement, which states that a foreign company cannot be forced to establish a company in Peru.
On July 8, the Economic Commission of the Congress of the Republic approved the draft of the law that seeks to regulate cryptoactive companies in Peru. These are some of the considerations to take into account in this regulation.
In January 2022, the Peruvian congressman Jose Luis Elías Ávalos presented the Framework Law for the Commercialization of Cryptoactives Bill, a project aimed at regulating organizations that provide cryptoactive services in Peru.
Pros and Cons of the Regulation of Cryptoactive Companies in Peru
Currently, the project has already been approved by the Economic Commission of the Congress of the Republic. After this step, the document continues on its way to be accepted in its entirety. However, there are several positions related to the relevance, pros and cons of the project.
In the first instance, the Blockchain Association Peru pointed out to local media Gestión de Perú, that the initiative has formal and substantive problems. This is indicated by the fact that, in its drafting process, the bill “never collected the observations of specialists or regulatory entities.”
Another important issue is that the bill aims to establish the user as the sole responsible for investing money in the cryptoactive platforms in Peru. This is evident in several sections of the bill, such as the fifth article, that reads as follows:
“The acquisition and use of crypto assets and cryptocurrencies are the absolute responsibility of their buyers and owners who, based on the principles of free market and free competition, must seek to be informed of the risks inherent in trading with assets of any kind.”
However, for the Economy and Finance Commission of the Peruvian Congress, the legal framework for trading crypto assets will provide “clarity, transparency, and legal certainty” to investors and issuers of cryptocurrencies.
Main Points of the Project that Would Affect investors
In addition to the aforementioned, Roberto Vargas, president of the Fintech Association of Peru also shared his point of view. For Vargas, the bill does not mention the different business models of the crypto industry, such as medium and small exchangers or cryptocurrency mining.
Due to the above, it is necessary that these types of laws are more exact when it comes to communicating what will be regulated. For example, in the case of Colombia, since 2022 a bill had been presented that sought to regulate “exchanges in the country.” The project speakers decided to limit its scope because it could lead to confusion.
The bill establishes that the exchanges that operate must be constituted in Peru as legal entities domiciled in Peru. This turns out to be an impediment for several investment companies. Even, according to lawyer Morales, this section of the bill could go against the Foreign Trade Agreement.
Whether or not the Congress will agree to open a space for debate remains to be seen. Thus, other protagonists of the crypto world be able to participate in the conversation.
By Audy Castaneda
