Colombia’s Congress has taken the first steps to clarify the issue by approving a bill regulating the practice of cryptocurrency exchanges in the country during its first discussions. One of the bill’s sponsors, Green Party representative Mauricio Toro, said the bill is needed to protect users from Ponzi schemes and thus provide them with security in the cryptocurrency world.
Colombia on the road to crypto regulation
More and more Latin American countries are aware of the growth and impact of crypto and crypto-related businesses in their territories. Colombia is one of them, prompting the government to speed up the regulation of cryptocurrency exchanges to clarify the responsibilities and obligations of these companies.
In this sense, the Colombian Congress has taken a step in this direction, approving a bill aimed at making the operation of cryptocurrency exchanges in the country more clear and secure. One of the bill’s backers, Green Party representative Mauricio Toro, posted his thoughts on the development on social media. According to Toro:
Colombia must move forward in regulating this legitimate and multi-million dollar business in order to create jobs and opportunities, while also allowing Colombians to buy assets with confidence.
In addition, Toro said the bill also aims to protect users and customers of these platforms from falling into Ponzi schemes.
A long way to go
While Toro is very optimistic about the potential impact of the bill, the project is still in its early stages and will need to be discussed three more times before it can be approved and presented as law. Due to the political environment facing Colombia today, in the middle of its electoral cycle, the second round of elections is coming, which may take more time than usual.
If approved in its current state, Colombia’s cryptocurrency exchanges would have to register to provide services that disclose to users the benefits, risks and possible profits of crypto trading. In addition, the bank will allow direct connection of cryptocurrency exchanges and fiat currency accounts, helping to avoid the development of Ponzi and other pyramid schemes.
Other institutions in Colombia are also working to regulate and control customer interactions with exchanges. In April, anti-money laundering watchdog UIAF announced that users must report their cryptocurrency movements to the group through an online system. However, the group later backed down and postponed sanctions on the aforementioned resolution.
What do you think of the new crypto bill approved by Colombia? Let us know in the comments section below.
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