.png){kind=logo}
The cryptocurrency market in Peru has rapidly been growing, key to which has been evolving regulations and proactive government effort. This article would be delving into various aspects that include the activities of the government that have so far been putting in efforts to ensure the country's responsible crypto adoption, a regulatory framework designed to ensure transparency and accountability, major investments that the sector has received, and key players driving the market forward. All these factors put together form a dynamic and very promising future for the cryptocurrencies in the country as Peru continues to develop its approach toward digital assets
The commitment of the Peruvian government in promoting responsible cryptocurrency adoption translates into manifold initiatives.
IDB (Inter-American Development Bank) Partnership: This was in 2023, after the IDB, together with its innovation arm, IDB Lab, acknowledged promising projects that utilized digital tokens for conservation purposes. Among these, Nature Services (Peru) stands out as an amazing case of incentives blockchain technology has provided towards good environmental behavior.
‘MoliCoin’ Program by La Molina: Since April 2022, the local mayor of La Molina has been spearheading an initiative to train restaurants and businesses on receiving Bitcoin and other cryptocurrencies. This only goes on to prove further that the government is interested in making the process easier to adopt digital assets.
The regulatory framework of Peru concerning cryptocurrencies is slowly taking shape:
Supreme Decree No. 006-2023-JUS: This decree was published in July 2023 and classifies Peruvian crypto asset exchanges as Virtual Asset Service Providers, VASPs (or in Spanish, PSAVs). Now, such PSAVs will have to report to the Financial Intelligence Unit in furtherance of transparency against financial crime.
Taxes: Transfers of crypto assets are not subject to Value Added Tax or the Financial Transactions Tax unless converted into cash and deposited in a local bank account.
Crypto Asset Marketing Framework: Proposed legislation initiated in December 2021, focusing on the establishment of clear guidelines regarding crypto assets and the roles of Virtual Asset Service Providers (VASPs).
There are a number of regulatory bodies important in the cryptocurrency market of Peru:
Superintendencia del Mercado de Valores, SMV
Superintendencia de Banca, Seguros y AFP, SBS
Banco Central de Reserva del Perú, BCRP
ABP is the largest association that governs and regulates the cryptocurrency market.
Bit2Me Acquires Fluyez: In July 2022, Spanish crypto exchange Bit2Me acquired Fluyez, the leading Peruvian crypto exchange, thus sealing its influence in Latin America.
Fluyez, Banexcoin, Bit2u, Webmoneyperu.com, Weeyz, VirgoX, BitInka, One Canal, and AgaCoin are the main operating companies in the Peruvian digital currency market.
The cryptocurrency market in Japan market is expected to reach US$9 million in 2028 from US$7 million in 2023 at a CAGR of 4.61%. Government initiatives, regulatory developments, and investments drive the upward trajectory in Peru's cryptocurrency market. What will be interesting to note will be the extent to which all these elements could redefine the future of digital assets in a country with respect to how the framework evolves.
