Colombian legislators have introduced a bill to regulate the country’s crypto sector, El Colombiano reported on March 3.
According to the report, Senator Gustavo Moreno and house representative Julian Lopez submitted the proposed legislation in the congress on March 3. This effort follows a failed attempt to adopt similar regulations last year.
Lopez reportedly said:
“This project wants clear rules of the game to generate a reliable and more attractive ecosystem for investments with guarantees for this emerging industry.”
In view of this, the bill outlines a framework for monitoring crypto-related activities, with areas such as market monitoring, assets promotion, education and taxation.
It also includes measures to prevent money laundering and terrorist financing, to improve the protection of investors and to promote industry growth.
In the meantime, an important aspect of the proposal is the introduction of a licensing system for Virtual Asset Service Providers (VASPs). If determined, this would require crypto service providers to obtain official licenses to operate in Colombia, in accordance with regulatory approaches that are seen in other countries.
The legislators noted that although vasp’s are not illegal, they have worked in a non -regulated environment. This lack of supervision creates uncertainty and exposes users to risks because of the absence of mechanisms for consumer protection.
Colombia’s crypto -market
The reintroduction of the bill emphasizes the growing role of digital assets in the economy of Colombia. A report from 2024 from Chainalysis ranked the country was among the top five in Latin -America for crypto transactions.
Moreover, estimates suggest that more than five million Colombians are actively involved in crypto -trade, with around $ 6.7 billion in digital assets that are circulating in 2024.
However, there are still concerns about fraudulent regulations such as Ponzi and Pyramid Scams and the use of cryptocurrencies for illegal financial activities.
In the meantime, Colombia has also investigated the potential of a digital currency of the Central Bank (CBDC). In 2023, the country’s central bank worked with Ripple to test a CBDC solution to improve its local payment systems.
Despite the promising start of the initiative, the current status remains uncertain because Ripple has taken a step back from his CBDC efforts.
