The Colombian Congress approved a bill regulating the behavior of cryptocurrency exchanges in the country in its first discussion, taking the first steps to bring clarity to the matter. One of the creators of the bill, Mauricio Toro, a representative of the Green Party, said that this bill is needed to protect users from Ponzi schemes, keeping them safe in the crypto world.
Colombia takes the path of regulation of cryptocurrencies
More and more countries in Latin America are realizing the growth and influence of crypto and related companies in their territories. Colombia is one of them and this is prompting the government to speed up the regulation of cryptocurrency exchanges in order to clarify the duties and responsibilities of these companies.
In this sense, the Colombian Congress has taken steps in this direction by approving a bill that aims to bring greater clarity and security to the operation of cryptocurrency exchanges in the country. One of the bill’s supporters, Green Party representative Mauricio Toro, gave your opinion about this development in social networks. According to Thoreau:
Colombia needs to move forward in regulating this business, which is legal and brings in many millions of dollars, in order to create jobs and opportunities, and to provide peace of mind to Colombians who can safely buy their assets.
In addition, Toro stated that this bill also aims to protect users and customers of these platforms from falling into Ponzi schemes.
Long way ahead
Although Thoreau was very optimistic about the impact this bill could have, the draft is still in its early stages and will need to be discussed three more times before it is approved and introduced into law. This may take longer than usual due to the political circumstances that Colombia is facing today, in the middle of its electoral cycle, with a second round of elections soon to take place.
If crypto exchanges in Colombia are approved in their current state, they will need to register to offer their services, revealing to their users the benefits, risks and possible rewards of trading cryptocurrencies. In addition, banks will allow direct communication between cryptocurrency exchanges and fiat currency accounts, which will help to avoid the development of Ponzi schemes and other fraudulent pyramid schemes.
Other institutions in Colombia are also taking steps to regulate and control interactions between clients and exchanges. In April, the money laundering watchdog UIAF announced that users would be required to report their cryptocurrency movements to the organization via an online system. However, the organization later backtracked and postponed the adoption of the said resolution.
What do you think of the new cryptocurrency bill passed in Colombia? Tell us in the comments section below.
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