Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Colombian senators are making another attempt to regulate the cryptocurrency market in the Latin American country.
According to the media outlet El Colombiano, Senator Gustavo Moreno and Congressional Consultant Julián López have introduced a bill aimed at establishing a legal framework that “protects” the nation’s cryptocurrency users.
Colombia: Lawmakers Call for ‘Urgent’ Crypto Regulations
Moreno emphasized that the absence of regulation means that cryptocurrency exchanges and other businesses operate in an unregulated environment, which “creates uncertainty and risk for consumers.”
Colombian senators meet in the nation’s senate in 2024.
The Senator further stated that the “lack of regulation” results in no “safeguards for users.”
Moreno also mentioned that Colombia lacks any “oversight to prevent the misuse of cryptoassets.”
Blockchain experts estimate that over 5 million Colombians currently engage with cryptocurrencies. They report that in 2024, individuals and residents of the country transacted approximately $6.7 billion worth of tokens.
However, detractors argue that the growth in adoption has been hindered by a rise in cryptocurrency scams and pyramid schemes.
Others assert that some Colombians are utilizing the largely unregulated cryptocurrency market for money laundering activities.
The country’s primary financial regulator, the Superintendencia Financiera de Colombia (translated: Colombian Financial Superintendence), has been working on cryptocurrency-related pilot projects since 2021.
Nonetheless, the same media outlet noted that the Superintendencia’s pilot initiatives have yet to yield a “specific regulatory framework.”
Such a framework would enable the Colombian cryptocurrency sector to “integrate with the national financial system,” the outlet reported.
The Colombian parliament building in Bogotá, Colombia. (Source: Bernard Gagnon [CC BY-SA 4.0])
Related Posts
Proposed Regulatory ‘Framework’ Bill
The bill includes 16 clauses addressing monitoring, advertising regulations, education, cryptocurrency taxation, and anti-money laundering and counter-terrorist financing measures (AML/CFT).
The lawmakers assert that by “protecting users,” the regulation could also “promote [crypto] investment” in the long term.
“Colombia has fallen behind the rest of the world […]. While other countries are advancing, [the industry here] remains unregulated. Our bill aims to establish clear rules of the game. We want to create a reliable and more attractive ecosystem for investment with built-in protections for this emerging industry.”
Colombian lawmaker Julián López
By appointing two trusted — but controversial — senior aides to key cabinet positions, Gustavo Petro is attempting a new approach to leave his mark on Colombia in the final 18 months of his presidency https://t.co/Fsntkmwbs4
— Bloomberg Economics (@economics) March 1, 2025
VASP Licensing System
The bill aims to implement a licensing system for cryptocurrency operators, who would be required to register as Virtual Asset Service Providers (VASPs).
In other countries, VASP licensing frameworks are typically designed to compel cryptocurrency exchanges and wallet companies to comply with AML/CFT protocols.
The media outlet quoted financial analyst Gregorio Gandini as stating that it is “crucial to regulate cryptocurrencies” as they are “becoming increasingly popular” in Colombia. He added:
“If crypto is not regulated, [Colombians] will adopt them in an irregular manner.”
Colombia’s Petro to name Edwin Palma as new energy minister, source says https://t.co/SO2XPP52HR pic.twitter.com/3MODPLqnh1
— Reuters (@Reuters) February 27, 2025
However, Colombian crypto investor Daniel Aguilar was quoted as saying that while it is important to provide a “secure framework” for companies to “grow and consolidate,” it is also vital “not to stifle innovation with overly stringent regulations.” Aguilar stated:
“If regulation is too rigid, crypto companies and entrepreneurs may be forced to operate from other countries with more flexible laws. We need a legal framework that safeguards users without hindering the sector’s growth.”
The investor also emphasized the importance of ensuring that cryptoassets are taxed fairly. Aguilar suggested that lawmakers should avoid “creating tax burdens that discourage” cryptocurrency adoption in Colombia.
The post Colombia Senators Launch Fresh Bid to Regulate Crypto appeared first on Cryptonews.
