Colombia Fintech Asks to Regulate Cryptocurrencies

The authorization that the United States Securities and Exchange Commission (SEC) gave for the inclusion and trading of shares of Bitcoin exchange-traded products (ETF) is a fact that should allow the regulation of cryptocurrencies in Colombia.

This was said by Gabriel Santos, president of Colombia Fintech, who assured that the United States has been one of the most reluctant jurisdictions to clearly define investment conditions in the cryptoasset ecosystem and through various refusals, and even investigations, there were been one of the most complex and confusing jurisdictions for the crypto asset ecosystem to operate.

With the decision, Santos said , an indisputable signal was sent to the market that the reality of crypto assets has arrived, starting with clarity for institutions that want to invest in Bitcoin in the United States.

“In addition, coming from the most important economy in the world means that the world must advance comprehensive regulations that allow for mass adoption of these,” he said.

He emphasized that the SEC’s decision returns to one of the pillars of the conversations that Colombia Fintech has promoted with the Ministry of Finance and the Financial Superintendency, seeking to generate legal security for the development of the industry.

In the decision, the SEC highlights that, to the extent that securities issuers comply with existing regulations, they must have access to regulated markets regardless of the nature of the asset. This is essential to ensure that the potential benefits of this technology reach more and more users.

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The regulation

“Colombia cannot be oblivious to this reality and this message, nor to the opportunities to participate in this emerging industry. This is a clear support for the ecosystem and that highlights the need for the Bill that we have been discussing so much with the Ministry of the Treasury, with the Financial Superintendence and the URF. We also hope that this historic event will lead to the Draft Circular 17 of 2022 seeing the light and allowing this industry to operate that seeks to protect consumers, attract investment and employment for Colombians. “The time to regulate is now, Colombia cannot be left behind on this issue,” said Santos.

In addition, he expressed that in 15 years, “Bitcoin has proven to be the freest exchange system that meets the fundamental characteristics of money (exchange agreement, unit of account and store of value), and has demonstrated its technological value and impact on the digital society. “

In the latter, Bitcoin has been the monetary asset with the greatest preservation of value in its 15 years of existence. Its use value extends to more than 420 million people.

The president of Colombia Fintech mentioned that there is a more mature one and it has been transformed, eliminating unwanted elements that generated uncertainty

He considered it essential to articulate regulatory aspects that allow managing and administering risks related to MLFT (Money Laundering and Financing of Terrorism), computer security and cybersecurity, and user guarantees and rights. Bitcoin appreciated a little more than 160% in 2023 and offset the drop in 2022 and overcame the stigmas of its use.

He said that it is necessary to take advantage of the experience of the pilot exercise that the Superfinanciera carried out on the matter.

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(Featured image by WorldSpectrum via Pixabay)

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First published in Portafolio, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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