By
Darya Rudz
July 24th, 2023
Until recently, there was no proper regulation of the crypto industry in Colombia, however, with the increasing the number of crypto owners in the country, the government realized the necessity for working on regulatory framework for all the issues related to digital assets.
Colombia has joined the list of countries whose central banks are interested in launching their own digital currencies. According to Luis Carlos Reyes, the director of The Directorate of National Taxes and Customs (DIAN), Colombia’s tax and customs agency, the country might introduce a digital currency that would “make transactions easier for the consumer.” Notably, this is the first time Colombia is talking about a central bank digital currency (CBDC).
Colombia’s newly appointed president Gustavo Petro, a former guerrilla, and an anti-corruption crusader, has turned out to be a crypto advocate. Previously, he made numerous statements in favor of cryptocurrencies, saying that Bitcoin (BTC) is “a superior cash technology”. Besides, Petro believes that Colombia should direct its energy surplus to mine the cryptocurrency in strategic regions, as a way to curb the trade in illicit substances.
With the support of the president, Colombia might integrate BTC either through mining or making the cryptocurrency legal tender. It would be the third sovereign country in the world to follow this path, initiated by El Salvador and accompanied by the Central African Republic. Introducing a CBDC would take Colombia even further, affirming that Colombia is working toward a crypto future.
Colombia Adopting Crypto
Colombia is one of those countries seeing the potential in blockchain and it believes that the future belongs to cryptocurrencies. Until recently, there was no proper regulation of the industry, however, with the increasing number of crypto owners in the country, the government realized the necessity for working on the regulatory framework for all the issues related to digital assets.
Last month, the Colombian government released a draft of the rules for crypto companies willing to operate in the country. The guideline addressed such issues as cybersecurity, money laundering policy, terrorism financing, as well as ways to trace crypto transactions.
According to the country’s financial regulatory body, Superintendencia Financiera, companies willing to run their crypto-related business in Colombia must provide the improvement of their technological and operational ability to keep track of transactions involving crypto. Besides, they must be able to provide the public with the data on the corporate name, available service channels, assets that they can offer services for, as well as the risks associated with these services.
In general, the rules are pretty similar to the regulatory frameworks introduced by other countries. However, these tips are at the stage of the draft at the moment. In other words, legal changes have not come into effect yet, and the legal status of digital assets in the country is still under question.
