Bill for the regulation of cryptocurrencies in Colombia is questioned.
Organizations of the technological sector question the bill to regulate cryptocurrencies in Colombia, which was presented before the Congress of the Republic last July.
According to the information published on the Dinero website, the Colombian Software Federation (Fedesoft), the Fintech Colombia Association and the Blockchain Colombia Foundation said they had found inconsistencies and deficiencies in the document, after having carried out a technical and legal analysis.
The representatives of the sector assure that the proposal left them quite worried, since they consider that in the project an ignorance of the operation and the characteristics of the cryptocurrencies is evidenced. On this, they affirm that the project is limited to considering the trading activity as the main use of cryptoactives, excluding other forms of use such as money, means of transfer of value, means of payment, property of reservation of value and programming of intelligent contracts, among others.
It is added that by proposing that only certain entities be granted authorization to use cryptocurrencies, sanctioning those who use them without permission, goes against the value offer that characterizes them and that facilitates massive access to these tools. In this way, it is considered that the project does not encourage a greater use of cryptoactives, since it also proposes the collection of taxes on transactions and establishes limits to those who can participate in the market.
They also consider that the time is premature to establish a regulation in Colombia, because they believe that the use of cryptocurrencies is still recent and is in full development. In this regard, they argue that most research and studies recommend avoiding advance regulations for uses of technology, since a new regulation may be needed in a short time.
In that sense, the Colombian associations believe that the current legal system allows for the advancement of measures to control and punish illegal activities (one of the main concerns of regulators), in addition to educating citizens and promoting the development and evolution of the sector.
The bill was presented on July 25 by Senator Carlos Abraham Jiménez, of the Cambio Radical party, who proposed the idea of regulating the sector by virtue of its growth and the boom in the adoption of cryptoactives in that country.
At the beginning of August, the senator explained that: “We propose that a regulation be issued for this business. This is not a pyramid; they have been established, they have a price and the exponential growth is over. Colombia can not afford to continue making important transactions without regulation. “
In its first articles, the draft defines basic concepts such as blockchain, digital wallets, virtual currencies, and trading, among others. Likewise, it highlights the duty to provide the pertinent information on the part of the entities that carry out operations with cryptocurrencies on risks, type, amounts and characteristics of the operations and establishes the duty to report suspicious movements to avoid fraud.
Regarding trading, transactions related to this activity are defined and the roles of those who carry it out, establishes that traders “must have an authorization issued by a competent authority”, which must be issued by the Ministry of Information Technology and Communications, regulator of activities carried out with cryptocurrencies. Finally, sanctions are established for carrying out operations without authorization, ranging from the closing of the commercial establishment to the cancellation of a certain monetary sum.
In tax matters, a tax of 5% is proposed quarterly on transactions carried out within the national territory or from and abroad. In addition, it is indicated that the value of the cryptocurrencies will be valued in the Colombian legal currency at the value that the cryptocurrency had at the time of the operation.
The document is currently in the hands of the Colombian congress and the debate on the proposal is open in the Andean country. In that sense, several experts have expressed expressing the need to complete the draft, given that cryptocurrency operations pose many other problems that, in their opinion, are not contemplated.
With this initiative, Colombia, like Mexico, takes steps forward in order to legalize the functioning of the ecosystem, in virtue of the growing interest of the public in this type of transactions.
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