Peru

Okay, here is the comprehensive report on the current status of retail cryptocurrency trading in Peru, structured as requested.
**Report: Retail Cryptocurrency Trading Status in Peru**

**1. Retail_Trading_Status**

*   **Status:** `Allowed-UnRegulated`

**2. Narrative Explanation**

As of early 2025, Peru permits its citizens and residents to buy, sell, and hold cryptocurrencies. However, this activity largely operates in an environment lacking a specific, comprehensive regulatory framework dedicated to crypto assets. While not explicitly illegal, cryptocurrencies are not recognized as legal tender by the Peruvian state, meaning no one is legally obligated to accept them as payment.

Key Peruvian financial authorities, including the Central Reserve Bank of Peru (BCRP - Banco Central de Reserva del Perú), the Superintendency of Banking, Insurance, and Private Pension Fund Administrators (SBS - Superintendencia de Banca, Seguros y AFP), and the Superintendency of the Securities Market (SMV - Superintendencia del Mercado de Valores), have stated they are not the competent entities to regulate crypto assets under current law and have issued warnings about the inherent risks associated with them, such as high volatility, lack of state backing, potential for fraud, and insufficient consumer protection.

Despite the absence of a specific crypto law, the activity is not prohibited. Individuals can legally acquire and trade cryptocurrencies, often through various exchange platforms operating within the country. This creates a "legal vacuum" where the use of cryptocurrencies is allowed, primarily governed by the agreements between transacting parties, as long as these do not contravene public order or existing mandatory regulations.

However, recent regulatory developments focus on mitigating illicit finance risks. Supreme Decree No. 006-2023-JUS, published in July 2023, and subsequent SBS Resolution Nº 02648-2024 (August 2024), designated Virtual Asset Service Providers (VASPs) – including crypto exchanges domiciled or incorporated in Peru – as entities obligated to report to the Financial Intelligence Unit (UIF-Peru), which is part of the SBS. These VASPs must now implement Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) prevention systems. This includes requirements like customer due diligence (Know Your Customer - KYC), risk management, appointing compliance officers, and reporting suspicious transactions. The FATF "Travel Rule" regarding originator and beneficiary information for virtual asset transfers is also being implemented.

While these AML/CFT regulations bring VASPs under the supervision of the UIF-Peru for financial crime prevention, they do not constitute a comprehensive regulatory framework for the crypto market itself (e.g., licensing, consumer protection specific to crypto, operational standards beyond AML).

Furthermore, profits from cryptocurrency trading are considered taxable income by the national tax authority (SUNAT), generally falling under capital gains ('second category income') for individuals or corporate income for businesses.

A proposed "Framework Law for the Commercialization of Cryptoassets" (Bill No. 1042-2021-CR) has been discussed in the Peruvian Parliament. This bill aims to establish a more formal regulatory structure, potentially including registration requirements for VASPs supervised by the SBS. However, this bill has faced objections from regulators and, as of early 2025, has not been enacted into law, leaving the specific regulation of crypto trading platforms and activities largely undefined beyond the AML/CFT requirements.

In summary, retail crypto trading is allowed but operates without a dedicated crypto-specific regulatory regime. While AML/CFT rules now apply to service providers, the broader market lacks specific licensing, operational oversight, and consumer protection rules tailored to crypto assets, placing the onus of risk assessment primarily on individual traders.

**3. Supporting Excerpts/Summaries**

*   **Lack of Specific Regulation & Legality:** "Cryptoassets are unregulated and lack a legal definition under Peruvian law, and therefore, do not have a regulatory entity... However, Peruvian legislation does not expressly prohibit the acquisition of or transactions with cryptoassets. Therefore, there is a legal vacuum that allows the use of cryptocurrencies in the Peruvian market by individuals..." (Source: CMS Law)
*   **Status as Legal Tender:** "It is not banned, and it is not recognized as legal tender. While the government does not ban involvement in crypto activities, crypto-related activities are allowed for individuals and business activities to take place, but with limited regulatory clarity..." (Source: Coinfomania) / The BCRP has stated that crypto assets "are not legal tender and are not supported by central banks either, so they do not fully