Colombian Congress Hears Local Feedback About Inconsistent Crypto Regulation Draft Bill

Colombian Draft Bill On Cryptos Called Inconsistent By Local Industry

The whole world is slowly moving to regulate cryptocurrencies more and more right now. This is a very important move as the market is in a dire need of regulation, but not all countries are creating a legislation that is completely positve for cryptos. Some countries are drafting some downright negative ones while others are simply having issues like inconsistency, which is Colombia’s case.

The major issue there steems from the fact that the bill that was introduced in late July by the senator Carlos Abraham Jimenez from the Cambio Radical party (the second largest one in the lower house of the Congress) has been called too inconsistent for many reasons.

Jimenez’s bill, called “On cryptocurrencises, or digital currencies” tried to define terms and suggestions for a framework to be used in the industry like taxing five percent of all crypto transactions both internal and international.

Local Experts Criticize the Bill

Experts have criticized the bill for lacking an assessment and a greater understanding of how the crypto world works. For instance, there seems to be some confusion on the bill as to which jurisdictions would be in charge of regulating these assets.

The Colombian Software Federation and the Fintech Association and Blockchain Foundation Colombia have also shed some light on the problems of the bill.

According to these organizations, some of the proposals are against the very nature of cryptocurrencies like taxing the transactions and limitating the actors that can participate in the market.

Some other experts have already found some other issues like the reports of the bill citing a crypto that does not exist anymore (Trickle, mentioned in the bill, was suspended by a Colombian financial watchdog) and even that there are loopholes that could open the space for even more illicit activities to be made.

Colombia Has a Bad Track Record With Cryptos

The truth is that the track record of the country with cryptocurrencies is simply not very good at all. The country has recently had a legal battle for the Buda.com exchange, which was closed without any explanation from the government.

It looks like these issues are far from being over in the country and that there is still a tough battle ahead for Colombia to be a part of the crypto world effectively and to grow more in this important area of the financial sector.

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