Colombia: New steps are being taken to regulate cryptocurrencies, here’s what you need to know
Today we’re going to be centring in on Latin America, specifically, Colombia. The cryptocurrency market, although in a volatile state, is not simply about returns on investment, in fact, for some it is a way of paying for commodities through an alternative to the principal currency of their home nation.
Colombia is a nation where the regulation of crypto assets is being closely monitored and developed in order to protect users and ensure companies involved in the exchanging of these assets are complying with the rules and not neglecting their responsibilities.
What’s happening in the project?
Last year, the Colombian authorities have been making use of a concept we mentioned in yesterday’s article, sandboxes, in order to test the legislation in a secure environment before rolling it out (supposedly) later this year.
Mauricio Toro, representative of the Green Party, is the promoter of the bill, and while it’s evidently a long way off, the fact that the discussion is even taking place should be encouraging to any of you looking to integrate your crypto operations, be it through mining or transactions, into Latin America.
Colombia is very aware of pyramid schemes that could come about relating to crypto, and so the project is looking to also promote awareness and infrastructure to prevent users being made vulnerable to the risks of getting involved in the market and being caught unaware. The development also means that banks will permit crypto exchanges to be linked with fiat currency accounts, facilitating transactions and trading and avoiding middlemen in the schemes we mentioned just a little while ago.
What does this mean for Colombia?
Over two thirds of the Colombian population want to incorporate crypto assets into their portfolio, be it for financial diversification to store currency in multiple forms, or for use in general transactions. However, the security, or current lack thereof, is the issue. This is where the pilot plan outlined in the bill can benefit the everyday citizen, meaning the security afforded by it will allow more transactions to take place within the nation, as well as across borders.
In turn, businesses overseas may be tempted into forming links with Colombia, or even branching out to operate within the nation, dealing in secure crypto transactions to benefit their business while also providing the desired services of the Colombian people.
So, if you are interested in finding out more about cryptocurrency and how they are being regulated in Colombia, as well as other opportunities to develop your business, contact us today! Below this article, you will find a link to set up a free fifteen-minute consultation with us to discuss your options further.
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