In Peru, cryptocurrencies are not considered legal tender and are not regulated by the country’s Central Bank.. However, the use of these digital assets has caused regulators and users to frame existing regulations in order to operate with cryptocurrencies.
In May 2018, The Central Reserve Bank of Peru issued a statement stating that cryptocurrencies are not backed by the Peruvian government and that their use can be risky. In addition, the statement warned about the possibility of illegal activities and the lack of consumer protection in cryptocurrency trading.
In December 2021, the Congress of the Republic received a bill that regulates the use and trade of cryptocurrencies in Peru. The law establishes the obligation that companies that operate with cryptocurrencies must be registered and regulated by the Superintendence of Banking, Insurance and AFP (SBS).
Likewise, the law establishes the obligation that companies that carry out transactions with cryptocurrencies have adequate security measures to prevent money laundering and terrorist financing.
In 2022, the SBS issued an official statement in which it analyzes the project and categorically rejects it, in which, after analyzing various aspects, it declares its incompetence to be able to regulate these digital assets proposed by the law.
Cryptocurrencies are not regulated, but they do pay taxes
In Peru, cryptocurrencies are taxed like any other financial asset. The National Superintendence of Customs and Tax Administration (SUNAT) has issued a series of regulations that establish the tax obligations for natural and legal persons who own or carry out operations with cryptocurrencies.
In general, Cryptocurrencies are considered a financial asset and the profits generated by their purchase, sale or exchange are subject to income taxes. Profits obtained from the sale of cryptocurrencies are subject to a rate of income tax that can vary from 5% to 30%depending on the amount of earnings and other factors that are particular to each case.
Besides, Natural or legal persons that carry out operations with cryptocurrencies are obliged to keep accounting records and present the corresponding tax declarations.. SUNAT has also established the obligation to submit an annual informative statement on operations with cryptocurrencies.
In this way, in Peru cryptocurrencies are subject to income taxes and natural or legal persons that carry out operations with them must comply with the corresponding tax obligations. It is important that people who operate with cryptocurrencies are adequately informed about the applicable tax regulations to avoid sanctions and fines. for breach.
In this sense, the use, sale and possession of cryptocurrencies are subject to income taxes, general sales tax (IGV); tax on financial transactions (ITF). It is relevant to take into account that the application of taxes may vary according to the specific circumstances of each case and that there are other tax obligations and regulations to comply with when operating with cryptocurrencies in Peru. Therefore, It is advisable to consult with a tax or legal advisor to know all applicable obligations and regulations.
In the absence of an applicable legal system, regulators and companies have been using the same legal figures that are available in current regulations, adapting them to the situations that have been originating with digital assets within the country.
This way, barter, payment in kind and other types of legal forms are those used in Peru to be able to determine which activity is under regulatory supervision, and which are the ones used by both companies and individuals to prevent the possession or trade with cryptocurrencies from being harmful.
Position of the Superintendence of Banking, Insurance and AFP
In 2022, when the SBS issued its opinion on the bill, it expressed concern about the lack of inclusion of virtual asset service providers as obligated subjects of the FATF recommendations for Latin America, in this sense it said that: “This Superintendence considers that regulating the activities carried out with AV is important; In this sense, the SBS, through the FIU, in line with the FATF recommendations, has proposed to the MINJUSDH that the PSAV be included as reporting entities for anti-money laundering purposes, which is under analysis.”.
The official letter that the Superintendency responded to suggests that the proposed regulation has been an effort without coordination with the other apparatus entities that were mentioned in the proposed regulation. On the contrary, the SBS showed a series of concerns about the use of cryptocurrencies for money laundering, terrorist financing and activities associated with illegal activity.
The central axis of the response of the SBS is based on the functions of the SBS itself, the FIU and the new functions that this bill granted to these entities, therefore, in the response on the project it indicates that: “The Superintendence, due to its nature and functions, cannot be a supervisor or keep a record of the entities that provide the AV sale and exchange service, since said activity is not financial intermediation, nor does it imply a precautionary task of solvency of entities. that mediate resources”.
He also stated that “In addition, in the case of AVs, the explanatory memorandum of the bill indicates that these constitute “digital money” since they could be used as a means of exchange, unit of account and store of value (money’s own functions), although it would not be legal tender. In this regard, we consider that the Central Reserve Bank should be consulted for its opinion on the implications that this could have on monetary policy, and whether it is appropriate to consider that these types of assets can indeed be used as “digital money” or equivalent to a currency”.
Definitely, Peru currently lacks a regulation that allows defining what cryptocurrencies are within the local legal systemIn addition to this, the strong rejection that the last project received from the SBS and the Central Bank of that country, makes it difficult for cryptocurrencies to be regularized within the country.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
It may interest you:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.