Key Takeaways
- • Fuerza Popular, Peru's largest congressional bloc led by Keiko Fujimori, has secured passage of multiple security-focused laws expanding police powers and military authority, with controversial provisions shifting some prosecutions of security personnel from civilian courts to institutional tribunals.
- • Fujimori, who secured 17.19% of the vote in the first electoral round, faces a June 2026 runoff as the front-runner for the presidency, positioning the party to implement an "iron fist" governance model reminiscent of her father Alberto Fujimori's 1990s anti-terrorism campaigns.
- • Peru's cryptocurrency transaction volume reached approximately $28 billion in 2025, with Bitcoin adoption growing in unbanked communities, creating a material asset class that would fall under the jurisdiction of security policies and potential regulatory frameworks being shaped by the Fuerza Popular-dominated Congress.
- • Current Peruvian law lacks a formal regulatory framework for crypto assets, which remain undefined and unregulated, creating a regulatory vacuum that could be filled by future Fujimori administration policies aligned with the party's expanded security mandate.
- • Critics characterize some of Fuerza Popular's security legislation as "pro-crime" due to reduced accountability mechanisms for security forces, raising governance and institutional risk concerns relevant to investors in emerging market jurisdictions.
Summary
Peru's Fuerza Popular party is leveraging its dominant congressional position to reshape the country's security architecture through a wave of legislation that expands law enforcement powers and military authority. The right-wing party, led by Keiko Fujimori, has successfully pushed through multiple security-focused measures targeting extortion, organized crime, and public safety during the 2025-2026 legislative sessions. A significant and controversial component involves shifting prosecutions of police and military personnel accused of misconduct from independent civilian courts to institutional forums within their own agencies, effectively creating parallel justice systems for security personnel.
Fujimori emerged as the front-runner in Peru's presidential race after securing 17.19% of the vote in the first electoral round and will face a runoff scheduled for June 2026. Her policy agenda explicitly targets what she terms "mano dura" (iron fist) governance—a framework that echoes her father Alberto Fujimori's anti-terrorism campaigns of the 1990s. The legislative groundwork currently being laid by Fuerza Popular appears designed to provide institutional and legal scaffolding for this enforcement model should Keiko Fujimori assume the presidency.
The cryptocurrency dimension adds material complexity to this governance shift. Peru's crypto transaction volume reached approximately $28 billion in 2025, reflecting substantial growth within the Latin American region, and Bitcoin adoption has gained traction among the country's unbanked populations. However, Peru currently lacks a formal regulatory framework for crypto assets, which remain undefined and unregulated under existing law. This regulatory void creates uncertainty about how future security and financial crime legislation—particularly given Fuerza Popular's expanded mandate—might be applied to digital asset markets and service providers.
Critical observers have characterized certain provisions within the party's legislative agenda as "pro-crime" owing to diminished accountability for security forces. This institutional risk consideration is particularly relevant for institutional investors operating in Peru or considering exposure to Latin American emerging markets, as reduced judicial oversight of law enforcement could have implications for property rights, contract enforcement, and regulatory predictability more broadly.
Fujimori emerged as the front-runner in Peru's presidential race after securing 17.19% of the vote in the first electoral round and will face a runoff scheduled for June 2026. Her policy agenda explicitly targets what she terms "mano dura" (iron fist) governance—a framework that echoes her father Alberto Fujimori's anti-terrorism campaigns of the 1990s. The legislative groundwork currently being laid by Fuerza Popular appears designed to provide institutional and legal scaffolding for this enforcement model should Keiko Fujimori assume the presidency.
The cryptocurrency dimension adds material complexity to this governance shift. Peru's crypto transaction volume reached approximately $28 billion in 2025, reflecting substantial growth within the Latin American region, and Bitcoin adoption has gained traction among the country's unbanked populations. However, Peru currently lacks a formal regulatory framework for crypto assets, which remain undefined and unregulated under existing law. This regulatory void creates uncertainty about how future security and financial crime legislation—particularly given Fuerza Popular's expanded mandate—might be applied to digital asset markets and service providers.
Critical observers have characterized certain provisions within the party's legislative agenda as "pro-crime" owing to diminished accountability for security forces. This institutional risk consideration is particularly relevant for institutional investors operating in Peru or considering exposure to Latin American emerging markets, as reduced judicial oversight of law enforcement could have implications for property rights, contract enforcement, and regulatory predictability more broadly.
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