Colombia introduces a law to regulate cryptocurrencies, with a focus on risk management, industry growth and investor protection.
According to reported by El Colombiano, Colombian authorities have introduced a bill to regulate cryptocurrencies, with a focus on risk management and the growth of the sector.
The report states that Senator Gustavo, together with Congressman Julian Lopez, presented the bill to Congress on 3 March. Similar attempts had been made last year, but were unsuccessful.
About this initiative, Julian Lopez said:
"This bill aims to establish clear rules to create a trustworthy and more attractive ecosystem for investment, ensuring protections for this emerging industry."
The bill details a regulatory framework for cryptocurrency-related activities, with a focus on asset promotion, education, taxation and market monitoring. In addition, it includes measures to combat money laundering, improve investor protection and foster growth in the sector.
The MP also highlighted the new licensing system for VASPs (Virtual Assets Service Providers). If approved, crypto service providers will have to obtain official licences to operate in Colombia, bringing them in line with the regulatory approaches of cryptocurrency-friendly countries.
Colombian lawmakers made it clear that VASPs are not illegal, but they operate in an unregulated environment, which creates uncertainty and exposes crypto users to risks due to a lack of protection procedures.
The Current State Of Crypto In Colombia
Colombia is close to becoming a digitised country and ranks among the top five regions in Latin America for cryptocurrency usage, according to a report from 2024 by Chain Analysis.
The report showed that more than 5 million Colombians participate in cryptocurrency trading, with a trading volume of $6.7 million in 2024.
However, serious concerns about fraudulent activity persist in the country. Pyramid schemes, Ponzi schemes and the use of crypto for illegal activities are some of the most common scams.
Colombian regulators have also been considering the adoption of a Central Bank Digital Currency (CBDC). In 2023, the Central Bank collaborated with Ripple to test a digital solution to improve the local payments system. However, the current status of this development is uncertain, as Ripple has withdrawn from the initiative.
The price of XRP falls 7 per cent on the eve of the launch of the first US spot ETF managed by Canary Capital, as traders weigh hype, deleveraging and the risk of the classic 'sell the news'.
Tether moves like a sovereign wealth fund: it hires traders from HSBC and accumulates billions in physical gold. The strategy, which mirrors the behaviour of central banks, marks a break from dependence on the US dollar.
Trump-related tokens register a massive and inexplicable rally (MELANIA +54%), despite the crypto market's cautious recovery. Insider hoarding is speculated.
Eleven Drainer, a new phishing-as-a-service, is expanding its business. Despite the sophistication of the attacks, human error remains the main weakness. The defence lies in user discipline.
According to reported by El Colombiano, Colombian authorities have introduced a bill to regulate cryptocurrencies, with a focus on risk management and the growth of the sector.
The report states that Senator Gustavo, together with Congressman Julian Lopez, presented the bill to Congress on 3 March. Similar attempts had been made last year, but were unsuccessful.
About this initiative, Julian Lopez said:
The bill details a regulatory framework for cryptocurrency-related activities, with a focus on asset promotion, education, taxation and market monitoring. In addition, it includes measures to combat money laundering, improve investor protection and foster growth in the sector.
The MP also highlighted the new licensing system for VASPs (Virtual Assets Service Providers). If approved, crypto service providers will have to obtain official licences to operate in Colombia, bringing them in line with the regulatory approaches of cryptocurrency-friendly countries.
Colombian lawmakers made it clear that VASPs are not illegal, but they operate in an unregulated environment, which creates uncertainty and exposes crypto users to risks due to a lack of protection procedures.
The Current State Of Crypto In Colombia
Colombia is close to becoming a digitised country and ranks among the top five regions in Latin America for cryptocurrency usage, according to a report from 2024 by Chain Analysis.
Chainanalysis
The report showed that more than 5 million Colombians participate in cryptocurrency trading, with a trading volume of $6.7 million in 2024.
However, serious concerns about fraudulent activity persist in the country. Pyramid schemes, Ponzi schemes and the use of crypto for illegal activities are some of the most common scams.
Colombian regulators have also been considering the adoption of a Central Bank Digital Currency (CBDC). In 2023, the Central Bank collaborated with Ripple to test a digital solution to improve the local payments system. However, the current status of this development is uncertain, as Ripple has withdrawn from the initiative.
Read Next
The First Spot ETF on XRP in the US Is imminent, but the Price Falls Early
The price of XRP falls 7 per cent on the eve of the launch of the first US spot ETF managed by Canary Capital, as traders weigh hype, deleveraging and the risk of the classic 'sell the news'.
From Stablecoin to Sovereign Wealth Fund: Tether's Gold Turn Abandoning the Dollar
Tether moves like a sovereign wealth fund: it hires traders from HSBC and accumulates billions in physical gold. The strategy, which mirrors the behaviour of central banks, marks a break from dependence on the US dollar.
Trump-linked tokens fly: Is there a Secret Behind the Sudden Rally?
Trump-related tokens register a massive and inexplicable rally (MELANIA +54%), despite the crypto market's cautious recovery. Insider hoarding is speculated.
New Eleven Drainer attack: threat to crypto wallets
Eleven Drainer, a new phishing-as-a-service, is expanding its business. Despite the sophistication of the attacks, human error remains the main weakness. The defence lies in user discipline.