Two Colombian regulators have proposed another bill that will help regulate the code. The bill consists of 16 provisions, including the VASP licensing system for crypto companies.
According to local media outlet El Colombiano, the bill aims to establish a legal framework that ensures protection of crypto users and encourages more investment in the country's emerging crypto industry.
The bill outlines a total of 16 articles covering several crypto-related aspects, including surveillance, marketing rules, education, crypto tax, anti-money laundering and counter-terrorism funding measures or AML/CFT.
Additionally, the bill also proposes a licensing system for virtual asset service providers that crypto companies wishing to operate in the region must apply. Other countries such as Hong Kong, Singapore, Canada and the UAE use VASP licenses to ensure they comply with local regulations.
Senator Gustavo Moreno and House Rep. Julian Lopez proposed the bill to Congress on March 2 after failing last year's attempts.
Moreno argued that Colombia needs to urgently establish crypto exchanges and corporate regulatory frameworks for domestic virtual asset companies.
According to Moreno, the lack of regulations does not provide crypto services with appropriate security mechanisms to protect users and prevent the misuse of crypto assets.
“Our bills are trying to establish clear rules for the game to produce something reliable and attractive. [crypto] “Ecosystem for investments that guarantee this emerging industry,” Rep. Lopez said.
According to the report, around 5 million Colombian users trade cryptocurrency. In 2024 alone, Crypto trading value reached $6.7 billion domestically. However, the outlet also points out that many users have been victims of fraud and pyramid schemes, with others using an unregulated crypto ecosystem to wash their money.
Colombia's financial supervisor, Colombia's leading financial regulator, has reportedly been working on several crypto pilot projects since 2021. However, the project has not yet created a “specific regulatory framework.”
