Colombian lawmakers introduce a bill to regulate crypto firms, aiming to protect users and integrate digital assets into the financial system.
Colombia Moves to Regulate Crypto Industry
Senator Gustavo Moreno and Congress Representative Julián López have introduced a bill to establish a legal framework for Colombia’s growing crypto sector.
With over five million Colombians using crypto and $6.7 billion transacted in 2024, officials argue that regulation is urgently needed to protect users and prevent illicit activity.
Addressing Risks and Consumer Protection
Moreno emphasized that the lack of crypto oversight creates uncertainty, leaving users vulnerable to scams, fraud, and money laundering risks.
Critics argue that unregulated exchanges and crypto firms allow financial crimes to flourish, prompting calls for stricter controls.
Key Provisions in the Proposed Bill
The legislation includes 16 clauses covering:
- VASP licensing for crypto firms
- AML/CFT compliance to prevent financial crimes
- Consumer protection mechanisms
- Crypto taxation policies
- Public education on digital assets
VASP Licensing System for Crypto Firms
The bill proposes a Virtual Asset Service Provider (VASP) licensing system, requiring exchanges and wallet providers to register and follow financial regulations.
Analysts say that proper licensing will boost investor confidence and help integrate crypto into Colombia’s financial system.
Balancing Regulation and Innovation
While some welcome the bill, crypto investor Daniel Aguilar warned against overly strict rules that could stifle innovation and push firms to relocate.
He also stressed the need for reasonable taxation, cautioning lawmakers against excessive tax burdens that might discourage adoption.
Colombia’s Crypto Future Hinges on Regulation
As other nations advance crypto-friendly policies, lawmakers argue that Colombia must act now to remain competitive and attract investment while ensuring consumer safety.
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
