The law regulating bitcoin in Colombia provides “clarity” but “falls short.”

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The passage of a bill that aims to regulate bitcoin (BTC) and cryptocurrency exchange transactions in Colombia has stirred the base in the coffee-producing country. Opinions on this legislative proposal, which still has some way to go before it is finalized, are varied.

User security, the key point of the proposed law, is the most debated issue. On the one hand, it is argued that it will offer greater certainty to users, which will result in trust and security for those who invest their money on platforms regulated by this legislation.

But another point of view opposes and warns that this project will make it easier for more companies without sufficient capital to register in Colombia.in what could be seen as a threat to the security of clients’ funds should bankruptcy petitions be filed.

The bill was approved last week in second debate by the lower house of the Colombian Congress.. This was a milestone for the South American country, considering that the regulation was rescued from the archives of the and resubmitted by a pro-cryptocurrency parliamentarian.

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Regulation Has 6 key pointsincluding limitations, prohibitions and some facilities for companies related to bitcoin Who want to operate within the law, if the bill evolves and becomes the law of the Republic.

To find out what the Colombian community thinks about this bill, CryptoNews contacted a couple of prominent figures in the cryptocurrency industry. cryptocurrencies In the coffee-producing nation.

They are Colombian entrepreneur Mauricio Tovar, CEO of broker Tropykus Finance, and Camilo Suárez, president of AsoBlockchain Colombia.

A “user-positive” Colombian project.

In Tovar’s opinion, Bill No. 139 of 2021on the regulation of brokerage firms for cryptocurrency trading, is “positive for the user.” in that it “establishes the conditions that exchanges must meet” for this purpose.

“The bill aims for transparency and for the public to know which exchanges meet the requirements,” Tovar said. He added that this proposed legislation “sends a signal of clarity to the market.”

The bill regulates a service that is already known to work and has been operating in Colombia for many years. And from my perspective, it is not placing high barriers to entry for new players. On the contrary, new players are expected to be encouraged to enter, given the regulatory clarity.

Mauricio Tovar, CEO of Tropykus.

Tovar argued that the “regulatory clarity” that the arrival of regulation in Colombia could generate. Would allow the entry of institutional investmentThe “in a very strong way” as investors will have more confidence.

“The law sets minimum requirements to protect users, it does not impose a barrier for new entrants,” he insisted. He added that “some things can be improved” in the legislative initiative, “I think in spirit and in the way it is proposed, it seeks to achieve an overall benefit for citizens.”

The bill “falls short” of protecting users.

Tovar’s views, in fact, disagree with Camilo Suárez. The director of the association that promotes the formation and adoption of the cryptocurrency market in Colombia argues that this regulatory proposal “is not up to the task” of protecting consumers.

In a telephone conversation with this newspaper, Suárez explained that in Colombia it takes about $30 and half a day of waiting to legally register a company. From his perspective, this fact alone does not guarantee the safety of Colombian users.

It is worth clarifying that the formal and mercantile registration of companies with the various chambers of commerce in Colombia. is part of the requirements imposed by the bill. On all bitcoin-related companies that want to enter the Colombian market.

And while it is true that the registration of companies can give a certain perception of security to Colombian users, Suárez resents it. Remember that there is the figure of Sociedad por Acciones Simplificada (SAS). This is nothing more than a company that Does not guarantee the security of users’ funds. In case a registered company should be declared bankrupt, according to the entrepreneur.

As it happens, if a company classified as SAS goes bankrupt, it can only answer to the affected users “up to the maximum of its assets,” according to Suárez. This, to the detriment of the people who invested money in that entity.

There is no guarantee for the consumer and user of cryptocurrencies. The type of company chosen by companies in Colombia is normally the SAS, which is liable at most with its assets. A corporation, on the other hand, is liable with its net worth. The SAS does not guarantee the safety of people’s funds in case of bankruptcy..

Camilo Suárez, president of AsoBlockhain.

Camilo Suárez also warns that “all companies” that will register in Colombia under the bill will do so under the SAS figure. This, he suggested, could be risky for those who decide to invest money in one of these companies.

Next challenge: the Senate

Suárez told CryptoNews that from AsoBlockchain. they have 22 proposed amendments to the bill that regulates bitcoin exchange operations in Colombia.

He said they will present it to the Colombian Senate, where it will have to be debated a few more times to be approved. Finally, the proposal will be sent to the House of Nariño so that President Gustavo Petro can sign it and enact it as a law of the Republic.

According to Mauricio Tovar, of Tropykus Finance, the fact that the bill was unanimously approved by the Lower House is a “good sign” for the upcoming discussion in the Senate.

No date has yet been set for discussion of the proposal in the upper house of the Colombian Congress. However, the atmosphere in the legislature “is positive,” as suggested by Tovar, who insists that the bill “benefits everyone in society.”

As the legislative process in Colombia unfolds, an adoptive reality exists in the coffee-producing country. According to blockchain analytics firm Chainalysis, this nation ranks 15th in the world in adoption.

Moreover, the Bitcoin ecosystem is increasingly present on Colombian soil. It is not just limited to stores and venues that accept cryptocurrencies. There is already a whole growing community clamoring for clarity.

The bill regulating the exchanges seems to be aiming at that goal. But that remains to be seen. “In its spirit and current form, the proposed legislation aims at the general benefit of Colombian citizens,” Tovar concluded.