Colombia Releases Regulation Draft for Crypto Market

The Financial Superintendence of Colombia has just released a draft of rules for the crypto industry. The rules focus on a variety of topics and are similar to what other countries have proposed.

Colombia has become the next country to release a draft of rules for the crypto industry. The country’s financial regulator, the Financial Superintendence of Colombia, posited the proposed regulations and asked for public comment.

Among the suggestions in the draft are risk management systems for money laundering and terrorism financing, the tracing of transactions, and general cybersecurity guidelines. The suggested proposals are similar in nature to what other countries have proposed.

It’s unsurprising that the Colombian government is looking to regulate the crypto industry, as the interest in the asset class is quite high in the country. Authorities will want to ensure that investors are protected and that no illicit activities are facilitated using crypto.

Cryptocurrencies are growing in popularity in Colombia, though it is still in the very early stages. About 6.1% of Colombians own crypto, and it is ranked fourth in the world in terms of Peer-to-Peer Bitcoin trading volume. 80% of Colombians also reportedly show a willingness to invest in crypto.

The country has also launched a regulatory sandbox to help with the regulation process and implementation of the technology. One food delivery app also accepts payment in crypto, which is a sign that is popular enough that a business might consider this. Some of the increase in crypto adoption might have to do with the fact that Bitso has launched its app in the country.

The crypto market is set to face a tremendous amount of regulation from countries across the world. The asset class has become entrenched enough that governments see the need to impose controls sooner rather than later. After many years of vacillating, these authorities are now quickly ratifying laws related to the market.

The G20 nations recently affirmed the need for cross-border coordination and stablecoin regulation. Stablecoins, in particular, has become a concern for governments, and the recent UST crash has reemphasized the need for controls.

Both the United States and the EU have also taken action for crypto regulation. The U.S. Treasury has released a framework for international cooperation on crypto regulation, while the EU has finalized a sweeping set of regulations.