The initiative seeks to bring clarity to the cryptocurrency industry in Colombia, which is currently in a gray area despite growing adoption. Proponents of the project have remarked on the need to define an institution to oversee these activities and establish rules for institutions to follow.
Congress Seeks to Give Legal Status to Cryptocurrency Assets In Colombia
Colombia is, once again, seeking to give legal status to actors in the cryptocurrency industry. According to local media, a new cryptocurrency bill has been introduced to the Colombian Congress, seeking to establish clear rules regarding the action of Virtual Asset Service Providers (VASPs) and their relation with other economic institutions.
The project has the support of Senator Gustavo Moreno and Representative Julian Lopez, who introduced the same project last year. Lopez reinforced the need for crypto regulation in Colombia, stating that the current gray zone hurts the industry, affecting the growth of its growth in Colombia and the safety of crypto users.
On social media, he declared:
This project seeks to have clear rules of the game to generate a reliable and more attractive ecosystem for investment with guarantees for this emerging industry.
The crypto bill introduces requirements and rules for VASPs, defining them as institutions that can provide custody, exchange, wallets, and a wide array of connected services. Additionally, the bill explains that these institutions should be registered to increase the trust and reduce fraud risks in the ecosystem.
To avoid problems like the one VASPs have faced in Chile, where they faced banking problems, the document explicitly mentions that traditional banks can offer their services to them as long as they comply with due diligence measures. The Agricultural Bank, a state-owned bank focused on helping this sector, is mentioned as a forced facilitator of financial services for VASPs.
Furthermore, the bill establishes “territorial funds,” regional initiatives that would be directed to develop projects using bitcoin technology. The government would also establish programs to train students to handle bitcoin.
If passed, the bill would align Colombia with the economies of El Salvador and Brazil, which already have equivalent regulations.
Read more: Blockchain Experts Meet With Colombian President to Discuss Technology’s Use Cases
