Colombia Proposes New Bill to Regulate Crypto Industry

Two Colombian regulators, Senator Gustavo Moreno and House Representative Julián López, have proposed a new bill to regulate the country’s growing cryptocurrency industry. The proposed bill consists of 16 provisions, including a Virtual Asset Service Providers (VASP) licensing system for crypto firms.

The bill aims to establish a legal framework that would ensure protection for crypto users and encourage more investment in the nation’s budding crypto industry. The proposed regulations cover several aspects, including:

  • Monitoring and marketing rules
  • Crypto tax and education
  • Anti-money laundering (AML) and counter-terrorism financing (CFT) measures

Importance of Regulation

According to Senator Moreno, Colombia urgently needs to establish a regulatory framework for crypto exchanges and firms due to virtual asset companies operating informally, which “generates uncertainty and risks for users.” The lack of regulation does not provide crypto services with proper security mechanisms to protect users and prevent the misuse of crypto assets.

“Our bill seeks to establish clear rules of the game to generate a reliable and more attractive [crypto] ecosystem for investment with guarantees for this emerging industry,” said Rep. López.

The proposed bill is a response to the growing number of crypto users in Colombia, with around five million users trading cryptocurrency and a total transaction value of $6.7 billion in 2024. However, the lack of regulation has also led to an increase in scams and pyramid schemes, as well as money laundering activities.

Current Regulatory Environment

The Colombian Financial Superintendent, the country’s main financial regulator, has been working on several crypto pilot projects since 2021. However, these projects have yet to produce a concrete regulatory framework.

Stay up-to-date with the latest news and developments in the world of cryptocurrency and blockchain on Global Crypto News.

Post Views: 1