tl;dr
Colombian lawmakers have introduced a bill to regulate the country’s crypto sector, aiming to create a reliable and attractive investment ecosystem. The proposed legislation covers market surveillance, asset promotion, education, taxation, and measures to prevent money laundering and terrorist finan...
Colombian lawmakers have introduced a bill to regulate the country’s crypto sector, aiming to create a reliable and attractive investment ecosystem. The proposed legislation covers market surveillance, asset promotion, education, taxation, and measures to prevent money laundering and terrorist financing. It also includes a licensing system for Virtual Asset Service Providers (VASPs). The bill reflects the growing role of digital assets in Colombia's economy and addresses concerns over fraudulent schemes and illicit financial activities.
Senator Gustavo Moreno and House Representative Julian Lopez submitted the proposed legislation to Congress on March 3. This effort follows a failed attempt to pass similar regulations last year. The project seeks to generate a reliable and more attractive ecosystem for investment with guarantees for the emerging industry. The bill outlines a framework for overseeing crypto-related activities, covering areas such as market surveillance, asset promotion, education, taxation, and measures to prevent money laundering and terrorist financing. It also includes a licensing system for Virtual Asset Service Providers (VASPs).
The bill’s reintroduction highlights the growing role of digital assets in Colombia’s economy. A 2024 report from Chainalysis ranked the country among the top five in Latin America for crypto transactions. Additionally, estimates suggest that more than five million Colombians actively engage in crypto trading, with around $6.7 billion worth of digital assets circulating in 2024. However, concerns remain over fraudulent schemes such as Ponzi and pyramid scams and the use of cryptocurrencies for illicit financial activities.
Colombia has also explored the potential of a central bank digital currency (CBDC). In 2023, the country’s central bank partnered with Ripple to test a CBDC solution to improve its local payment systems.