A bill that governs cryptocurrency exchanges in Colombia was approved by the Congress of Colombia in its first meeting. It is the first step to clarify this matter. Representative of the Green Party, Mauricio Toros, one of the authors of this bill, said that it was necessary to safeguard users against Ponzi schemes and give them protection in the crypto-world.
Colombia Joins Crypto Regulation Road
Latam is seeing the influence and growth of crypto-related businesses in more and more countries. Colombia is among them. This is driving the government to speed up regulation of cryptocurrency exchanges in order to clarify their responsibilities.
The Colombian Congress took steps to this end by passing a bill to provide more security and clarity to crypto-exchange operations in Colombia. Representative Mauricio Toros of Green Party was one of the main proponents. gaveHe shares his thoughts on the social media developments. Toro’s opinion:
Colombia must move ahead in the regulation of this multi-million-dollar legal business to create jobs and other opportunities, and to provide security for Colombians who want to buy assets.
Toro added that this bill also protects customers and users from Ponzi schemes.
We are still a long way off
Although Toro expressed optimism about the bill’s potential impact, it is still early in its development and needs to be reviewed three times before being approved. It might take longer because of the current political climate in Colombia, where the country is currently going through its first round of elections.
If the current state is approved, crypto exchanges will be required to register and offer services to users. This disclosure must include information about risks and benefits of cryptocurrency trading. The banks will permit the direct connection between crypto exchanges and fiat currencies accounts. This is a way to prevent the spread of Ponzi schemes, and other pyramid schemes.
Others in Colombia also want to control and regulate customer-exchange transactions. In April, the UIAF (money-laundering watchdog) announced that customers would need to submit their crypto transactions to it via an internet system. The organization later reversed course and delayed the approval of this resolution.
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