The fundamental problem with the growth of cryptocurrencies in Colombia is the lack of a clear and integrated regulatory framework. This is explained by Julián Colombo, Bitso’s Senior Director for South America.
Although the use of crypto assets is prominent in the country, with nearly 6 million Colombians already using related platforms, this potential has not yet been fully realized, according to the Colombian Chamber of Electronic Commerce.
Five years ago, Colombo said, many users viewed regulation as distant or even undesirable. Today, that perception has changed. “This lack of regulation prevents us from reaching out to the general public and businesses that need clear rules,” says the manager.
The most conservative companies demand certainty.They need to know that there is a regulator who will take care of them if something goes wrong with their funds.. Without this support, traditional banks would continue to close accounts of companies in this sector, creating real operational barriers and limiting integration with the formal financial system, the spokesperson said.
Colombia is one of the most dynamic markets in the region. According to a report by CriptoNoticias, it competes with Brazil and Mexico in trading volume and occupies a key position among the 20 countries that trade the most cryptocurrencies worldwide.
However, the bill has stalled in Congress without reaching an agreement between the Financial Supervisory Authority, Bank of the Republic, and the Ministry of Finance. In fact, the possibility of regulation is currently being analyzed in Congress itself.
Failed experiments and lack of progress have left the ecosystem in a state of instability, hampering reliability and scalability. This uncertainty has tangible consequences.
For users, the risk of fraud and untrustworthy platforms increases. For companies, Payments to overseas suppliers become complicatedfinancial management with the digital dollar, and global talent recruitment.
For Colombo, on the other hand, stablecoins such as USDC and USDT have proven to be the most popular and practical tools, as they combine Bitcoin-inspired technology with stability of value.
The most obvious case is remittances. Previously, sending money from abroad was subject to fees of 5% to 10% (20% depending on the broker). With cryptocurrencies, your money arrives almost free and quickly.
It’s important to comment. fintech Colombians are consolidating stablecoins, and this number is expected to double in the coming years. Additionally, the Directorate General of Taxation and Customs (DIAN) has imposed new reporting requirements on Bitcoin, Ethereum, and stablecoin operations, indicating not only increased fiscal oversight but also tacit recognition of the sector.
Colombo offers practical recommendations, including: Fundamental risks, distinguishing between volatile assets such as Bitcoin and stablecoins Choose a regulated platform that you can trust in other markets.
The executive said Columbia has the talent, the demand and the real use cases. What is missing is a legal framework that enables the transition from informal, piecemeal adoption to a mature, secure, and large-scale ecosystem. Without regulation, the local Colombian cryptocurrency market will continue to grow, but it will not be able to reach its full potential.
Although clear government regulations can increase legal certainty and facilitate institutional adoption, Bitcoin operates based on its own rules that are already defined and enforced It is immutable within the source code.
Bitcoin does not require any additional regulation beyond what is already specified in the protocol. That is, mathematical, cryptographic, and economic rules that anyone can verify and that no one can unilaterally change.
(Tag translation) Bitcoin (BTC)
