Article 39 of the law in Peru states that it is prohibited to “carry out transactions using cryptocurrencies” such as Bitcoin. The recently approved text will come into force as of February 9 of the following year, in Peru. Peruvian law contemplates economic sanctions that could exceed 190 thousand dollars for those who fail to comply with the provisions.
Peru approved the regulations of Law No. 31557 that regulates remote games and sports betting with the same modality. The extensive document dedicates a specific paragraph to the prohibition of Bitcoin and cryptocurrencies for the payment of both activities. This implies that the online game or virtual casino will not be able to use crypto payments. The same fate for the so-called ‘Play-to-Earn’ games.
The new rule also reaches companies in that niche that are related to crypto assets in Peru. The regulation will begin to take effect in practice as of February 2024. Subsection ‘e’, of article 39 of the law, resolves that “carrying out transactions using cryptocurrencies” is prohibited. The norm sees the light in the prelude to a legislative debate that aims to lead to the regulation of the activity.
What the Law Says that Prohibits Paying Sports Betting with Bitcoin in Peru
The recently approved text, whose application will begin on February 9, 2024, raises the request for authorization to work. The period will run the following 30 days from the entry into force of the rule, between February 10 and March 10, 2024.
During this period, all technological platform operating companies that offer these services must virtually present their request to the Ministry of Foreign Trade and Tourism of Peru (Mincetur) to be granted operating authorization. Those who do not comply with the procedure will be unable to continue operating.
In the case of the use of cryptocurrencies, however, the new law leaves no room for doubt:
“The Owner, without prejudice to the provisions of the Law, is prohibited from carrying out transactions using cryptocurrencies.”
The law contemplates economic sanctions that could exceed 190 thousand dollars for those who fail to comply with the provisions.
The Peruvian Foreign Trade and Tourism Speaks
The Minister of Foreign Trade and Tourism of Peru, Juan Carlos Mathews, said the following:
“The rule will allow the Peruvian State to collect close to S/ 162 million annually, to be invested in the reactivation of tourism, tourist infrastructure works, promoting sports and addressing mental health programs. Furthermore, we make it clear that it will not affect betting and prize payment. The money won as a prize will be collected in full. The tax will apply to national and foreign online gaming and betting companies.”
The official considered joining other jurisdictions where the activity is also regulated:
“It is the first time that this important economic activity has been regulated in the country. In South America, Peru becomes the third country to regulate it, after Colombia and Argentina (in the provinces of Buenos Aires, Córdoba and Mendoza).”
Online gaming is not new and its expansion in Latin America and the world is increasing. In that sense, Mincetur delivered the following numbers:
- There are 50 online sports betting and gaming technological platforms operating in Peru, as of October 2023.
- Global online gaming gross revenue in 2022 will reach $102 billion, according to an international study by H2 Gambling Capital.
- It is estimated that the volume of bets made in Peru during 2022 was close to S/3,800 million.
By Leonardo Pérez
