Peru Takes Action Against Crypto Money Laundering and Terror Financing


Peru has issued a new decree to address the concerns of money laundering and terrorist financing related to cryptocurrency. This decree requires all crypto exchanges in the country to comply with anti-money laundering (AML) regulations.

The Peruvian government aims to regulate the crypto ecosystem to protect its financial system from illicit activities. To that end, virtual asset service providers, such as individuals and companies within Peru, must report information to the Financial Intelligence Unit (UIF-Peru). The UIF-Peru will be responsible for receiving, analyzing, and transmitting data to detect money laundering and terrorism financing activities.

The decree adheres to FATF recommendations and highlights the “travel rule” for KYC standards. However, the ABPE has been excluded from the regulatory process. This implementation of the regulations will have a significant impact on the crypto industry in Peru and will require stakeholders to boost their compliance.

The decree is a major step towards combating financial crimes and protecting Peru’s economy from the potential risks associated with cryptocurrencies. Other South American nations are also beginning to regulate the crypto and digital asset industry. For example, Banco do Brasil announced its plans to launch a Central Bank Digital Currency (CBDC) in 2024, while received a license to operate in the country. Additionally, Argentina’s securities regulator, the Comision Nacional de Valores (CNV), approved the regulation of Bitcoin futures contracts on the Matba Rofex exchange. This allows investors to gain exposure to Bitcoin’s price without owning the underlying asset.

The UK and Singapore have joined forces to set global crypto standards and explore CBDCs.

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