Article originally published in El Tiempo.
“The reality is that the market exists with or without regulation, so rules are necessary for the protection of Colombians, as there are rules for protection against bank activity, auto industries, and for many other industries where the potential for abuse exists”
Juan C. Pryor
The original article discusses a PL 510 – a proposed cryptocurrency regulation bill in Colombia-, highlighting the potential benefits and challenges of crypto regulation. Currently, cryptocurrencies are not fully regulated, creating uncertainty in the market.
The bill, reintroduced by Senator Gustavo Moreno and Representative Julián López building on a draft voluntarily withdrawn in 2023, aims to establish a legal framework to integrate the crypto industry with traditional financial entities, promoting transparency and consumer protection.
The bill does not recognize cryptocurrencies as legal tender but seeks to protect consumers and prevent market manipulation. It focuses on regulating VASP, like Binance and Bitso, requiring them to register and disclose risks associated with crypto transactions.
Experts like Gabriel Santos of Colombia Fintech and Juanita Rodríguez Kattah of Bitso emphasize the importance of clear rules to foster trust and investment. However, challenges remain, including the implementation of registration processes and overcoming skepticism from some sectors. Additionally, the bill promotes blockchain education through initiatives by the Ministry of ICT and the SENA. While cryptocurrencies are not currently illegal, they lack specific regulatory oversight, and the bill aims to address this gap, balancing innovation with consumer protection.