Colombia has proposed a new bill to regulate the cryptocurrency market, aiming to protect users and attract investment. Introduced by Senators Gustavo Moreno and Julián López, it requires licensing for crypto services. The bill addresses user vulnerabilities, advertising rules, and crime prevention measures. Its goal is to enhance market safety and compliance with international standards, reflecting growing participation in cryptocurrency transactions.
Colombia has recently introduced a bill aimed at regulating its burgeoning cryptocurrency market to enhance user protection and attract more investments within the digital finance sector. Proposed by Senator Gustavo Moreno and House Representative Julián López, the legislation was presented to Congress on March 2. The lawmakers expressed concerns regarding the absence of clear guidelines, which has left users exposed to potential scams and illegal activities.
Should the bill pass, it would mandate that all companies involved in cryptocurrency services obtain a license to operate within Colombia. This regulatory approach aligns with established practices in countries such as Canada, Singapore, and the United Arab Emirates. Additionally, the legislation outlines advertising regulations, tax obligations, and measures to counteract crimes like money laundering and terrorism financing.
Representative Julián López asserted that the proposed law would contribute to a safer cryptocurrency environment. “Our bill aims to establish clear guidelines to foster a reliable and attractive ecosystem for investment,” he noted. Currently, approximately five million people engage in cryptocurrency trading in Colombia, with transaction volumes reaching $6.7 billion in 2024, underscoring the critical need for proper regulation to safeguard against fraud and illegal operations.
Since 2021, the primary financial regulatory body of Colombia has been exploring potential cryptocurrency regulations; however, formal rules have yet to be established. The introduction of this new bill aspires to rectify this situation by implementing definitive standards for the industry, thereby protecting users and stimulating further growth in the digital finance landscape.
In conclusion, Colombia’s newly proposed cryptocurrency regulation bill aims to create a structured and secure environment for digital currency transactions. By requiring licensing for service providers and imposing guidelines for advertising and taxation, the legislation seeks to protect users from scams and illegal practices. This effort demonstrates Colombia’s commitment to fostering a robust investment ecosystem in the cryptocurrency sector while ensuring compliance with national and international laws.
Original Source: globalsouthworld.com
