Colombia has introduced a bill to regulate its cryptocurrency market, aiming to protect users and attract investments. Lawmakers Moreno and López emphasize the need for clear rules to combat scams and promote reliability. The law will require licensing for cryptocurrency firms and include advertising, taxation, and crime prevention measures. With five million crypto users, the formalization of regulations aims to create a safer investment climate.
Colombia has proposed a new bill aimed at regulating its expanding cryptocurrency market. The legislation intends to enhance user protection and incentivize investments in digital currencies. Senators Gustavo Moreno and Julián López introduced the bill to Congress on March 2, underscoring the need for clearer regulations to shield users from scams and illicit activities.
If enacted, the law would mandate that companies providing cryptocurrency services obtain a license to operate within Colombia, mirroring regulatory frameworks in countries like Canada, Singapore, and the UAE. This licensing requirement is expected to establish more reliable operational standards in the industry.
The proposed legislation also outlines criteria for advertising, taxation, and measures to combat financial crimes, including money laundering and terrorism financing. “Our bill aims to establish clear guidelines to foster a reliable and attractive ecosystem for investment,” stated House Representative Julián López.
Currently, approximately five million Colombians trade cryptocurrencies, with transaction volumes reaching $6.7 billion in 2024. However, the absence of regulatory oversight has left many cryptocurrency firms unregulated, leading to increased risks of scams and illegal activities. Since 2021, Colombia’s primary financial regulator has been exploring regulatory options for cryptocurrency but lacks formalized rules.
The introduction of this new bill aims to rectify the situation by establishing definitive regulations for the cryptocurrency sector, thereby promoting a safer and more trustworthy investment environment.
Colombia’s initiative to regulate its cryptocurrency market through a new bill reflects a critical step toward ensuring user safety and stimulating investment. By requiring licensing for cryptocurrency companies and outlining clear rules for operations, the proposed legislation seeks to mitigate risks associated with scams and illegal practices. As the country attempts to formalize its crypto industry, the impact of this bill could reshape the investment landscape in Colombia.
Original Source: globalsouthworld.com
