First steps are being taken in Colombia to regulate cryptocurrency exchanges.
The Colombian Congress has taken the first steps toward bringing clarity to this issue by passing a measure that governs the conduct of bitcoin exchanges in the nation during its first discussion. A member of the Green Party and one of the bill’s authors, Mauricio Toro, claimed that customers need security in the crypto realm by having this protection from Ponzi schemes. More and more Latin American nations are becoming aware of the expansion and influence that cryptocurrency and industries associated to it have on their regions. One of them is Colombia, and because of this, the government is moving quickly to regulate cryptocurrency exchanges and define the obligations of these businesses.
By passing a bill that aims to increase the security and clarity of the operation of cryptocurrency exchanges in the nation, the Colombian Congress has, in a sense, moved the country in that direction. Representative Mauricio Toro of the Green Party, one of the bill’s backers, shared his thoughts on this situation on social media. Toro added that another goal of this legislation is to prevent clients and users of these sites from falling victim to Ponzi schemes.
If adopted as it is, Colombian cryptocurrency exchanges would be required to register before providing their services and inform their clients of the advantages, dangers, and potential rewards of trading cryptocurrencies. Additionally, banks will permit direct connections between cryptocurrency exchanges and fiat currency accounts, preventing the growth of Ponzi schemes and other pyramid frauds. In Colombia, other entities are also taking efforts to manage and regulate customer-exchange relations. The UIAF, a watchdog on money laundering, said in April that users would have to use an online system to record their bitcoin transactions to the group. The organisation then changed its mind and delayed sanctioning the aforementioned resolution.