Discover How Peru’s Latest Financial Regulations Might Signal the Termination of Commission-Free Cryptocurrency Transactions and Their Impact on You

• The importance of regulatory measures for the health and visibility of the market is stressed by Adolfo Morán, an expert in compliance.
• It’s essential that Compliance Officers maintain a direct relationship with the firm, enhancing efforts in cryptocurrency transactions or in combating money laundering.

New regulatory frameworks affecting FinTech entities and Virtual Asset Service Providers (VASPs) have been established in Peru, aiming to solidify the safety and transparency within the digital currency landscape. These adjustments are anticipated to bring about meaningful transformations in the operational conduct of these businesses on Peruvian soil.

A Perspective on the New Directives by a Compliance Specialist

Adolfo Morán, pivotal in the inception of Ethereum Lima and a specialist in compliance related to anti-money laundering, has shared his assessments regarding the potential effects of these newly deployed regulations. With his extensive background in guiding FinTech companies on compliance, Morán accentuates the criticalness of these directives for the sustenance of a stable and overt marketplace.

Expectations from a Compliance Officer (CO)

Inquiries frequently come from enterprise starters and chief executives about the functions of a Compliance Officer (CO). Morán elucidates:

“The responsibility of the CO should be entrusted to an individual, not a firm. This person should have an intimate understanding of the business’s core activities, whether it’s in enabling VASPs to conduct cryptocurrency transactions or preventing money laundering.”

Reflected in various Peruvian-focused Crypto News Flash articles, it is noteworthy to mention that the role of a CO does not necessitate specified experience or a particular background; however, a direct association with the firm is requisite, whether through employment or a service contract.

The Requirement for Internal Documentation

In relation to internal documents such as the Manual and Code, Morán states that these are not subjected to approval from the Financial Intelligence Unit (UIF).

“These are ratified internally by either the board or general management, yet the UIF might seek them at their discretion, or as a component of the Annual Compliance Officer Report,” he remarked.

Emphasis on the ‘Travel Rule’

Highlighting a crucial element of the new legislation, Morán shed light on the ‘Travel Rule’ and its pivotal role in guaranteeing the traceability and openness of cryptocurrency exchanges. He suggested that this topic will be paramount in forthcoming dialogues.

The developments happening in Peru indicate a progressive move towards the integration of more comprehensive oversight within the financial technology and digital currency sectors, with an aim to fall in line with international benchmarks and uphold the security of the financial marketplace in the region.