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FinTechs belonging to this category offer financial services using crypto currencies. This category also includes FinTechs utilising blockchain and distributed ledger technologies (DLT) upon which Bitcoin and Ethereum are based, among others. FinTechs develop and do research in this field in order to create new services – e.g. crypto currency exchange markets, wallet providers, NFTs-related services, new payment services, "smart contracts" or new clearing and settling services.
Introduction
Attitude of the country towards financial services using crypto currencies
We don't have a regulation regarding crypto currencies yet, however they are known and used by the market. People in Peru can trade with crypto currencies, taking into consideration that the activity is not regulated. In addition, the Peruvian Central Bank has issued a public note in the mass media, warning about the potential risks associated with the acquisition, trading, or promotion of crypto currencies (fraud risks, possible link to illicit activities). In July 2023, the Ministry of Justice modified the list of obliged entities to be supervised by the Peruvian Financial Intelligence Unit. The Supreme Decree #006-2023 included the Virtual Assets Services Providers as new business subject to the anti-money laundering regulations. However, specific regulation and how to comply with it are still pending.
Currently, Peru does not recognize cryptocurrencies as legal currency. However, the market remains active, with growing adoption in e-commerce, remittances, and informal investment communities. The Peruvian Central Bank and SBS are jointly evaluating a possible regulatory framework for crypto assets. The inclusion of Virtual Asset Service Providers (VASPs) under the AML regime marks the first formal step toward future regulation.
Legal affairs
Obligations and requirements to provide financial services using crypto currencies described above
Crypto currencies are currently outside the regulation. This may vary soon. VASPs must now comply with anti-money laundering duties under the supervision of the UIF, including risk-based policies, customer due diligence (KYC), and suspicious transaction reporting. However, no license or registry is yet available for exchanges, wallets, or custodians. This may create legal uncertainty for providers seeking to operate formally.
Additional comments regarding the legal situation for financial services using crypto currencies or what FinTech’s must be aware of in this business area
Until now, the currency in Peru is metallic, physical currency, otherwise it has no legal existence. Nevertheless, crypto assets are used for commercial and investment purposes under private autonomy principles.
Economic conditions
Market size for financial services using crypto currencies and biggest companies in this business area
There is enough space for this kind of asset and service. There is a market for such assets in Peru. The adoption of cryptocurrencies has grown steadily, especially among retail users. There is no precise data from the SBS or Peruvian Central Bank, but private reports indicate millions of dollars in monthly trade volume. The lack of regulation still deters institutional actors.