The Congress of Colombia has approved a bill that regulates the behavior of cryptocurrency exchanges in the country in its first discussion, taking the first steps to bring clarity to this issue. One of the creators of the bill, Mauricio Toro, a representative of the Green Party, stated that this bill is needed to protect users from Ponzi schemes, giving them security in the crypto world.
More and more countries in Latam are realizing the growth and influence crypto and crypto-related businesses are seeing in their territories. Colombia is one of them, and this is moving the government to accelerate the regulation of cryptocurrency exchanges to clarify the responsibilities and duties of these companies.
Colombia has to move forward in regulating this business, which is legal and multi-million dollar, so that jobs and opportunities are created, but also so that it provides peace of mind to Colombians who can buy their assets safely.
Furthermore, Toro stated that this bill is also directed to safeguard users and customers of these platforms from falling into Ponzi schemes.
While Toro was very optimistic about the impact this bill might have, the project is still in its early stages and will need to be discussed three more times to be approved and presented as law. This might take more time than usual, due to the political circumstances that Colombia is facing today, in the middle of its election cycle, with its second election round coming soon.
If approved in its present state, cryptocurrency exchanges in Colombia will have to register to offer their services, disclosing the benefits, risks, and possible profits of crypto trading to their users. Also, banks will allow the connection between cryptocurrency exchanges and accounts in fiat currency directly, helping to avoid the development of Ponzi schemes and other pyramid scams.
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