The Colombian Congress has taken the first step toward clarifying the issue by approving in its first debate a bill that would regulate the behavior of cryptocurrency exchanges in the country. One of the bill’s authors, Green Party representative Mauricio Toro, said the bill is necessary to protect users from Ponzi schemes and give security to the crypto world.
Colombia is on the road to crypto regulation
A growing number of Latam countries are realizing the growth and influence of crypto and crypto-related businesses. Colombia is one such country, where the government is accelerating the regulation of cryptocurrency exchanges and clarifying the responsibilities and obligations of these companies.
In this sense, the Colombian Congress has taken a step in this direction by approving a bill that seeks to give greater clarity and security to the operation of crypto exchanges in the country. One of the bill’s proponents, Green Party representative Mauricio Toro,expressedhis opinion on this development on social media; according to Toro,
“The bill is a step in the right direction,” he said.
Colombia must move forward with the regulation of this legal, multi-million dollar business, not only to create jobs and opportunities, but also to allow Colombians to purchase assets with confidence.
In addition, Toro said the bill is also directed to protect users and customers of these platforms from falling into Ponzi schemes.
A Long Way Ahead
Toro was very optimistic about the impact this bill would have, but the project is still in its early stages and will need to be discussed three more times before it is approved and submitted as law. It will need to be debated three more times before it is approved and submitted as a law. This may take longer than usual due to the political situation Colombia is currently facing, in the midst of an electoral cycle, with a second round of elections soon to take place.
If approved in its current state, Colombian cryptocurrency exchanges would be required to register to offer their services and disclose the benefits, risks, and possible profits of crypto trading to their users. In addition, banks would allow direct connections between cryptocurrency exchanges and fiat accounts, helping to avoid the development of Ponzi schemes and other pyramid scams.
Other Colombian institutions are also moving to regulate and control interactions between customers and exchanges: in April, the UIAF, a money laundering watchdog, announced that users must report cryptocurrency activity to the organization via an online system. However, the organization later backtracked and postponed sanctioning the mentioned resolution.
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