Colombian Senate To Promote A Bill For Crypto

Key Points:

• Colombian Senator Gustavo Moreno led the first discussion on Bill 139 of 2021, which aims to regulate crypto-asset exchange services provided by digital platforms.
• The country’s House of Representatives overwhelmingly adopted the law at the end of last year.
• Still, if the bill is not approved by June 20, it will sink in Congress.

According to Valora Analitik, Gustavo Moreno, a member of the Colombian Senate, held the first debate on Bill No. 139 of 2021, which aims to regulate crypto asset trading services provided through digital platforms.

That bill was already approved unanimously (172 legislators) in the House of Representatives at the end of last year. Still, if the bill is not approved by June 20, it will sink in Congress.

On May 18, a panel discussion was conducted in Colombia about the necessity for regulation of platforms where cryptocurrencies like Bitcoin, Ether, and Ripple, as well as stable currencies like USDC, may be exchanged.

The bill’s regulatory points include the requirement to register in Colombia, conduct identity verification, separate customers’ funds from the company’s funds, and adhere to the principles of free competition and the free market, with the platform responsible for educating users and ensuring blockchain security.

Bill 139 of 2021 aims to enhance the crypto-assets business by ensuring a transition that is regulated, safe, and transparent for all stakeholders.

Colombia now ranks 15th in the world in terms of crypto adoption; for its part, it ranks third in Latin America, behind only Brazil and Argentina, demonstrating the need to build a clear legal framework for a sector experiencing exponential development.

This business has already established laws in neighboring countries like Brazil, where legal requirements have been implemented to facilitate the expansion of financial services through cryptocurrency.

Senator Gustavo Moreno of the Alianza Verde Centro Esperanza Coalición and project speaker said:

“We began to build a solid and transparent regulatory framework whose sole objective is to provide Colombia with a reliable and secure financial market driven by crypto assets.”

He stated that he expects the Commission will vote in favor of boosting the expansion of the Fintech business and making the nation a model in Latin America in this regard.

The discussion is slated for the second order of business, when the Senate’s Sixth Committee, comprised of 13 Senators, will determine the industry’s future in the nation.

Karen Duque, the Bitso platform’s head of legal affairs for Colombia and Brazil, stated that Colombia has the potential to be the second country in Latin America to adopt crypto ecosystem regulation after the Financial Superintendence carried out the so-called “Sandbox” with several of the most important banks and allied exchanges.

According to Duque, the FTX bankruptcy and loss of resources case is an example of a chance for the area to enhance legislation to safeguard consumers of crypto marketplaces.

The expert believes that the Colombian crypto law should include a particular section on the licensing requirements for enterprises that want to function in the ecosystem while keeping in mind that they are not banking companies and need license flexibility.

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Harold

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