Supreme Court judge: “Peru Should Introduce Cryptocurrency Regulations In The Country”

In the past decade, most governments and financial authorities have not taken any steps towards cryptocurrency regulation in their respective jurisdictions. This in turn is causing a menace as cryptocurrencies are used for money laundering and financing other illegal activities. However, since the boom in 2017, countries have taken a more pro-active approach in regulating the field while some, like Peru, are using blockchain systems to combat the vices in the industry.

Peru’s Superior Judge Calls For Cryptocurrency Regulation

In a talk with JusticaTV, the official channel of the Peruvian judicial system, Bonifacio Meneses Gonzales, a superior court judge, called on Congress to pass regulations on cryptocurrencies. Although Gonzales feels the country is taking massive strides forward in its legal system, he calls for more regulation to stop money laundering activities using cryptocurrencies.

He said the lack of proper laws in governing cryptocurrencies within the jurisdiction is a loose end that enhances money laundering. He further said,

“It is urgent that the legislative authorities dictate the adequate laws in money laundering so that whoever uses crypto is clearly identifiable; this scenario must have a legislative regulation.”

Money laundering is classified a s an autonomous crime in Peru, after a ruling put the Legislative Decree No. 1106 and the Plenary Agreement 01-2017 of the Supreme Court of Justice became law.

Supreme Court of Justice judge Bonifacio Meneses Gonzales speaks on regulation of cryptocurrencies in Peru

“A Few Bad Apples”

Peru is experiencing massive growth in the adoption rates of Bitcoin and other cryptocurrencies, progress that the judge supports. However, Gonzales believes the vices associated with the industry such as money laundering are tarnishing the progress of adoption and legal authorities should work towards finding a solution. He said,

“The traffic of bitcoin exists, and the criminals are identified. But because it is out of our jurisdiction, digital assets can be used in shady businesses.”

Some of these perpetrators are politicians in the country who obtain campaign funds in dubious ways through cryptocurrency. Gonzales explains that these politicians raise funds through unregulated operations that promote money laundering. He explains that the politicians hold fundraising events to provide a means to beat the system. He further said,

“How is a campaign of three, four million dollars or more going to be supported with the contribution of people unable to justify – a mechanic or a housewife – contributions of $10,000, $50,000?”

A positive use for blockchain technology*iPXzuIOpZadW4Ud8-WU3eA.png

Peru government will use the LAC-Chain to reduce the corruption cases in government (Source: Medium)

Gonzales is part of the authorities calling for more regulation in Peru following rampant cases of scams, hacking and illegal activities carried out on the blockchain. The government announced earlier in May that a partnership with and the Inter-American Development Bank to solve corruption cases at the government level. The project is expected to be built on LAC-chain harnessing the benefits of blockchain technology to record the purchase of public goods and recording of contracts.

The new innovation comes months after the former president of Peru, Alan García committed suicide after allegation charges were uncovered in the infamous Odebrecht Affair. Furthermore, his predecessor, Pedro Pablo Kuczynski – who was also part of the corruption scandal – was sentenced to three years in prison on corruption charges.

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