In a renewed push for cryptocurrency regulation, Colombian Senator Gustavo Moreno and House Representative Julián López have introduced a bill to establish a legal framework for virtual asset service providers (VASPs) in the country.
The proposal, consisting of 16 provisions, was submitted to Congress on March 2, following an unsuccessful attempt to pass similar legislation last year.
According to local media outlet El Colombiano, the bill seeks to enhance user protection, promote investment, and introduce clear guidelines for businesses operating in Colombia’s growing crypto sector. Among its key aspects, the legislation outlines monitoring mechanisms, marketing regulations, tax guidelines, educational initiatives, and stringent anti-money laundering (AML) and counter-terrorism financing (CFT) measures.
The proposal includes implementing a licensing system for crypto firms and mandating VASP authorization for legal operation in the country. This approach mirrors existing regulations in places like Hong Kong, Singapore, Canada, and the UAE, aimed at ensuring consumer protection and financial stability.
Senator Moreno stressed the urgent need for crypto regulation in Colombia, noting that many digital asset firms operate without oversight, posing user risks. He pointed out that the lack of a regulatory framework leaves investors vulnerable to fraud, scams, and financial crimes, including money laundering.
“Our bill seeks to establish clear rules of the game to generate a reliable and more attractive [crypto] ecosystem for investment with guarantees for this emerging industry,”
said Representative López.
Colombia is experiencing increased cryptocurrency adoption, with approximately five million users and $6.7 billion in transactions in 2024. However, the absence of regulation has led to scams and illicit activities. Since 2021, the Financial Superintendent has been working on crypto regulations through pilot programs, but a definitive regulatory framework has not yet been established.
Similarly, HashKey Group announced on January 13 that its Middle East and North African subsidiary has received conditional approval for its Virtual Asset Service Provider (VASP) license application from the Dubai Virtual Assets Regulatory Authority.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
