The Financial Superintendent of Colombia has just released a draft of regulations for the crypto industry. The rules focus on a variety of topics and are similar to those proposed by other countries.
Colombia has become the next country to issue draft regulations for the crypto industry. The country’s financial regulator, Colombia’s Financial Superintendence, presented the proposed rules and asked for public comment.
Suggestions in the draft include risk management systems for money laundering and terrorism financing, transaction traceability and general cyber security guidelines. The proposed proposals are similar in nature to those proposed by other countries.
It is not surprising that the Colombian government is looking to regulate the crypto industry, as interest in the asset class is quite high in the country. Authorities would like to ensure that investors remain safe and that no illegal activities are facilitated using crypto.
The popularity of cryptocurrencies is increasing in Colombia, although it is still at a very early stage. About 6.1% of Colombians hold crypto, and it ranks fourth in the world in terms of peer-to-peer bitcoin trading volume. Reportedly 80% of Colombians also show willingness to invest in crypto.
The country has also launched a regulatory sandbox to help with the regulation process and technology implementation. A food delivery app also accepts payments in crypto, a sign that’s so popular that a business might consider it. Some of the increase in crypto adoption may stem from the fact that Bitso has launched its own app in the country.
The crypto market is set to face a massive amount of regulation from countries around the world. The asset class has become so strong that governments feel the need to impose controls at the earliest. After years of volatility, these authorities are now increasingly ratifying the laws relating to the market.
The G20 countries recently reaffirmed the need for cross-border coordination and stable currency regulation. Stablecoins, in particular, have become a concern for governments, and the recent UST crash has emphasized the need for control.
Both the United States and the European Union have also taken action for crypto regulation. The US Treasury has released a framework for international cooperation on crypto regulation, while the EU has finalized a comprehensive set of rules.