Two Colombian regulators have proposed another bill that will work to regulate Crypto. The bill includes 16 provisions, including a VASP licensing system for crypto firms.
According to local media outlet El columbianoThe bill aims to establish a legal framework that will ensure security for crypto users and encourage more investment in the country’s debutant Crypto industry.
The bill underlines a total of 16 articles that cover several crypto-related aspects, including monitoring, marketing rules, education, crypto taxes, as well as-like laundering and anti-terrorism financing measures or AML/CFT.
In addition, a virtual asset service providers licensing system has also been proposed in the bill, which the Crypto firms who want to work in the field will have to apply. Other countries like Hong Kong, Singapore, Canada and UAE use VASP licenses to ensure that they will follow local rules.
Senator Gustavo Moreno and House representative Julian Lopez proposed a bill to the Congress on 2 March after failing in his attempt last year.
Moreno argued that Columbia immediately needs to establish a regulatory structure for crypto exchanges and firms due to virtual asset companies in the country, which are working informally that “leads to uncertainty and risk for users.”
Lack of regulation, Moreno said, does not provide crypto services with proper safety mechanisms to prevent the safety and misuse of crypto assets of its users.
“Our bill wants to establish a clear rule of the game to generate a reliable and more attractive [crypto] The ecosystem for investment with a guarantee for this emerging industry, ”said Rape Lopez.
According to the report, about five million column users are trading cryptocurrency. In 2024 alone, the Crypto transaction price has reached $ 6.7 billion in the country. However, the outlet has also noted that many users have fallen victim to scams and pyramid plans, and others take advantage of irregular crypto ecosystems to loot money.
Columbia’s Financial Superintendent, Colombia’s Chief Financial Regulatory, has been allegedly working on several crypto pilot projects since 2021. However, projects have so far produced “concrete regulatory structure”.
