Cryptocurrency

Colombian Draft Bill on Crypto Called ‘Inconsistent,’ Denounced by Local Industry

Colombian-Draft-Bill

A draft bill on crypto regulation presented to Colombia’s Congress has been heavily denounced by the local tech sector as reported by Colombian financial journal Dinero on Tuesday, 24th September.

The formal draft was introduced in late July by senator Carlos Abraham Jimenez from Cambio Radical, which is the second largest party in the lower house of Colombia’s Congress.

The bill namely “On cryptocurrencies, or digital currencies,” provided certain definitions for various crypto-related terms and recommended the issuance of licenses for trading coins. The bill also actively focused a five percent tax on all crypto related transactions on both internal and international front through which 1 percent should be sent to an organization guarding crypto users against fraudulent activity.

Amid this, Congress has already organized conversation on the bill on which the experts started giving first comments. As per the professional lawyers’ statement by local legal outlet Ambito Juridico, the draft is absent an assessment and understanding of certain crypto processes. For example, the experts elaborated issue with the fact that the bill presented coins under the Ministry of IT and Communications jurisdiction. In other countries, monitoring is conducted by financial institutions.

Further speaking to the subject matter, Colombian Software Federation (Fedesoft) and local Fintech Association and Blockchain Foundation Colombia have circulated their own critique stating that the bill has certain “weaknesses and inconsistencies” stating: “Some proposals that are included in the draft go against the very use of cryptocurrencies, with taxes on transactions, and limitation of actors that can participate in crypto trading, among others.”

With this, the experts are more inclined towards the non-existent currency Trickle discussed in a bill, which seems to be a project of Fenix ​​Premium, a Colombian platform interrupted earlier by Colombian financial watchdog. Additionally, they requested that the proposed regulatory approach could incite different illicit activities.

Further elaborating the matter, Cointelegraph has reported earlier on a legal battle for Buda.com, a South American crypto exchange whose accounts were shut down without any further explanation by all Colombian banks in June 2018. However, Buda later requested new Colombian president Ivan Duque for assistance to sign a petition on behalf of all its users.

Besides this, Duque, who took charge in office in August 2018, is quite excited about crypto-related technologies. When he started touching on the theme, he assured to cut taxes for blockchain startups and cryptocurrency, acknowledging that he was “obsessed” with the technology!!

About the author

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Shalin Soni

Shalin joined CryptoNewsZ as Associate Finance (Cryptocurrency Research & Analysis) in 2018 and has 10 years of collective experience to work on financial modeling and financial planning & analysis activities (fp&a) domains. He has worked with various organizations in India and added values by leveraging his skills and expertise. He has strong domain expertise in research & analysis, valuation, and fp&a. He has worked with various organizations in India and added values by leveraging his skills and expertise. He has strong domain expertise in research & analysis, valuation, and fp&a.
You can also mail him at [email protected] to discuss anything related to his reports.

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