A group of Colombian lawmakers led by Senator Gustavo Moreno introduced a bill to regulate cryptocurrencies in the country, in order to attract businesses, reduce risks and encourage the adoption of its underlying technology.
The cryptocurrency market has experienced explosive growth in recent years, and Colombia has been no exception. With more than five million active users and a transaction volume exceeding $6.700 billion in 2024, the country is consolidating itself as one of the most relevant markets in Latin America.
However, this boom has also brought with it significant challenges, such as the increase in scams and informal operations that put consumers at risk.
BUY BITCOINGiven this scenario, a group of legislators led by Senator Gustavo Moreno presented a bill that seeks to regulate the cryptocurrency sector. The initiative not only aims to provide a clear legal framework for companies operating in this space, but also seeks to mitigate the risks associated with digital transactions and encourage the adoption of technologies such as blockchainThis project, which already has the support of different sectors, could make Colombia a regional benchmark for the crypto industry.
A law to regulate crypto service providers
The bill presented by Senator Gustavo Moreno and Representative Julián López consists of 16 articles and seeks to establish a comprehensive regulatory framework for the cryptocurrency sector.
According to the text presented, this bill seeks regulate the activities of Virtual Asset Service Providers (VASPs), including exchanges and cryptocurrency and token exchange platforms, in order to ensure transparency and security in transactions. In addition, it is intended implement effective prevention mechanisms against money laundering and terrorist financing, which are two of the risks most associated with the incorrect use of cryptocurrencies.
The project also seeks promote financial education so that users can understand both the benefits and risks of trading with cryptoassets. On the other hand, the regulation is also focused on Promote the use of blockchain technology in various sectors, such as public administration and e-commerce, with the aim of harnessing their potential to improve efficiency and transparency.
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In short, this regulatory project seeks to balance technological innovation with the financial security of citizens, establishing a regulated environment that protects users and encourages the safe development of the crypto sector in the country.
"Regulation does not seek to stifle innovation, but to regulate a sector that is already too relevant to operate in informality", Senator Moreno assured during the presentation of the project.
The rise of cryptocurrencies in Colombia
In recent years, Colombia has become one of the countries with the highest adoption of cryptocurrencies in Latin America. According to data from the latest report Regarding crypto adoption at a global level, more than five million Colombians use crypto assets, and the transaction volume exceeded $6.700 billion dollars in 2024. This growth is explained, in part, by the growing acceptance of bitcoin and other cryptocurrencies as means of payment in businesses, as well as by the expansion of crypto asset exchange platforms operating in the country.
TRADE WITH STABLECOINSTo boost this growth, the Colombian government had already implemented initiatives such as the regulatory sandbox, a controlled space in which companies can test blockchain-based products and services under the supervision of the Financial Superintendence. This program has allowed startups and traditional companies to explore the possibilities of the technology without facing the risks associated with a completely unregulated environment.
However, despite these advances, the lack of comprehensive regulation has generated concern among users and authorities. "It is important that legislators act now to prevent the sector from falling into legal uncertainty or practices that harm consumers", said Julian Lopez, co-author of the project.
Blockchain: a pillar of digital innovation
Another highlight of the bill presented by Moreno is its focus on encouraging the adoption of blockchain, the underlying technology of cryptocurrencies. Although this technology is primarily known for its relationship with bitcoin, its applications go far beyond financial transactions.
In Colombia, blockchain is already being used in sectors such as logistics, health and public administration. For example, some companies use this technology to ensure product traceability, while government entities, such as the Mayor's Office of Bogotá, the apply to improve transparency in its processes.
The bill therefore also seeks to encourage these initiatives and broaden their scope, considering that this technology is not just a fad, but a tool that can transform the way the public and private sectors operate.
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The challenges of regulation
While the bill has been welcomed by much of the sector, its implementation will not be without challenges. Experts have warned that regulation must be flexible enough not to stifle innovation.
Finally, user education will be key to its success, if approved. Currently, many of the scams and frauds associated with cryptocurrencies occur because consumers do not adequately understand how these assets work, so it is necessary for people to have access to financial education programs that allow them to understand their potential, advantages and risks.
SOLANA BUYSIn conclusion, the bill to regulate cryptocurrencies in Colombia represents an important step towards formality and innovation in a sector that is becoming increasingly important in the global economy. With its focus on blockchain and its commitment to financial education, this legislation could make Colombia a regional benchmark for the crypto industry.
Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
