A new bill has been presented to the Chamber of Representatives in Colombia, aiming to regulate crypto exchanges operating in the country. The proposal, sponsored by legislators Julián López Tenorio and Gustavo Moreno Hurtado, seeks to establish a regulatory framework for virtual asset services suppliers (PSAV) and promote the adoption of cryptocurrencies and their underlying technology.
The main objective of the bill is to regulate PSAV under the supervision of the Superintendence of Societies, establishing duties and rights for these platforms. It also proposes the creation of a record for PSAV and facilitating access to financial services, including granting the right to the Agrarian Bank to provide financial products.
This initiative comes after several attempts to regulate the crypto sector in Colombia have failed to prosper in the legislative chambers. The country has seen a rise in crypto operations, with data from Chainalysis and interest in cryptocurrency-based exchange-traded funds (ETFs) in the American stock market highlighting the need for a clear regulatory framework.
The bill takes into account the provisions established by the International Financial Action Group (GAFI) and relies on local regulators, such as the Financial Intelligence and Analysis Unit (UIAF). It recognizes the legal character of cryptocurrencies in the country and aims to formalize the sector through compliance with certain rules.
The presentation of the new bill is a significant step towards regulating the crypto sector in Colombia, which has faced difficulties in establishing clear rules. Despite the lack of legal clarity, institutional participants have continued to enter the space, with examples like Wenia, an exchange from the Bancolombia Group, which began operations in the country last year.
The bill’s emphasis on regulation and supervision could provide a much-needed framework for the crypto sector in Colombia, promoting growth and adoption while ensuring compliance with international standards. As the legislative process unfolds, it remains to be seen whether this proposal will succeed where previous attempts have failed, and what impact it will have on the country’s crypto industry.
It’s worth noting that investments in crypto assets are not regulated in some countries and may not be suitable for retail investors, as the total amount invested could be lost. It’s essential to consult local laws and regulations before investing in crypto assets.
