The Colombian Congress approved in the first discussion a bill that regulates the behavior of cryptocurrency exchanges in the country, taking the first steps to clarify this issue. One of the creators of the bill, Mauricio Toro, a representative of the Green Party, stated that this bill is necessary to protect users from Ponzi schemes, providing them with security in the world of cryptocurrencies.

Colombia gets on the path of crypto regulation

More and more countries in Latam are becoming aware of the growth and influence that crypto and crypto-related companies are seeing in their territories. Colombia is one of them, and this is moving the government to accelerate the regulation of cryptocurrency exchanges to clarify the responsibilities and duties of these companies.

In this sense, the Colombian Congress has taken steps in this direction by approving a bill that seeks to provide more clarity and security to the operation of crypto exchanges in the country. One of the promoters of the bill, the representative Mauricio Toro of the Green Party, it gave your opinion on this development in social networks. According to Bull:

Colombia has to advance in the regulation of this business, which is legal and multimillion-dollar, so that jobs and opportunities are generated, but also so that it provides peace of mind to Colombians who can buy their goods safely.

In addition, Toro stated that this bill is also aimed at safeguarding the users and clients of these platforms from falling into Ponzi schemes.

A long road ahead

Although Toro was very optimistic about the impact this bill could have, the bill is still in its early stages and will need to be discussed three more times to be approved and presented as law. This could take longer than usual, due to the political circumstances facing Colombia today, in the midst of its electoral cycle, with its second round of elections coming soon.

If approved in its current state, cryptocurrency exchanges in Colombia will be required to register to offer their services, disclosing the benefits, risks, and potential gains of cryptocurrency trading to their users. In addition, banks will allow the connection between cryptocurrency exchanges and fiat currency accounts directly, helping to prevent the development of Ponzi schemes and other pyramid schemes.

Other institutions in Colombia are also moving to regulate and control client-exchange interactions. In April, the money laundering watchdog, the UIAF, Announced that users would have to report their cryptocurrency movements to the organization through an online system. However, the organization later backtracked and postponed sanction of said resolution.

What do you think about the new crypto bill approved in Colombia? Tell us in the comments section below.

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