Colombian lawmakers have launched a invoice to manage the nation’s crypto sector, El Colombiano reported on March 3.
In line with the report, Senator Gustavo Moreno and Home Consultant Julian Lopez submitted the proposed laws to Congress on March 3. This effort follows a failed try and go related laws final 12 months.
Lopez reportedly stated:
“This venture seeks to have clear guidelines of the sport to generate a dependable and extra engaging ecosystem for funding with ensures for this rising trade.”
Contemplating this, the invoice outlines a framework for overseeing crypto-related actions, overlaying areas akin to market surveillance, asset promotion, training, and taxation.
It additionally consists of measures to forestall cash laundering and terrorist financing, improve investor safety, and foster the trade’s progress.
In the meantime, a key side of the proposal is the introduction of a licensing system for Digital Asset Service Suppliers (VASPs). If enacted, this is able to require crypto service suppliers to acquire official licenses to function in Colombia, aligning with regulatory approaches seen in different international locations.
The lawmakers famous that whereas VASPs will not be unlawful, they’ve been functioning in an unregulated surroundings. This lack of oversight creates uncertainty and exposes customers to dangers as a result of absence of client safety mechanisms.
Colombia’s crypto market
The invoice’s reintroduction highlights the rising function of digital property in Colombia’s economic system. A 2024 report from Chainalysis ranked the nation among the many prime 5 in Latin America for crypto transactions.
Moreover, estimates counsel that greater than 5 million Colombians actively have interaction in crypto buying and selling, with round $6.7 billion value of digital property circulating in 2024.
Nonetheless, issues stay over fraudulent schemes akin to Ponzi and pyramid scams and the usage of cryptocurrencies for illicit monetary actions.
In the meantime, Colombia has additionally explored the potential of a central financial institution digital foreign money (CBDC). In 2023, the nation’s central financial institution partnered with Ripple to check a CBDC answer to enhance its native fee techniques.
Regardless of the initiative’s promising begin, its present standing stays unsure as Ripple has stepped again from its CBDC efforts.