Colombian lawmakers push for crypto regulations

Colombian lawmakers have launched a fresh bid to regulate the nation’s growing cryptocurrency industry, aiming to provide legal clarity and consumer protection. The proposed bill, backed by Senator Gustavo Moreno and Congress Representative Julián López, seeks to create rules that safeguard users while encouraging investment. Lawmakers warn that the current lack of regulation leaves the sector vulnerable to fraud, financial crime, and uncertainty.

With over five million Colombians using crypto and transactions reaching $6.7 billion in 2024, concerns over scams and illicit activities have intensified. The Superintendencia Financiera de Colombia has been working on crypto-related pilots since 2021, but no solid regulatory framework has emerged. The bill proposes a licensing system for Virtual Asset Service Providers (VASPs), ensuring compliance with anti-money laundering and counter-terrorist financing laws.

Supporters argue that clear regulations will boost investment and integrate crypto into the national financial system. However, critics caution against excessive restrictions that could push businesses abroad. Some investors stress the importance of fair taxation, warning that heavy tax burdens could discourage crypto adoption rather than support its growth.

The bill, covering areas such as consumer protection, marketing rules, education, and taxation, aims to create a balanced approach. While debates continue, Colombia faces a crucial decision—whether to foster innovation or risk falling further behind in the global crypto market.

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