"The reality is that the market exists with or without regulation, so rules are necessary for the protection of Colombians — just as there are rules for banking, the auto industry, and any sector where the potential for abuse exists."
— Juan C. Pryor, quoted in El Tiempo
Colombia's PL 510 — a proposed cryptocurrency regulation bill currently under study in Congress — has sparked a genuine debate about how to bring legal structure to digital asset markets without stifling an industry that is already operating at scale.
What's Worth Welcoming
The bill's ambition is right. Crypto markets in Colombia have grown significantly, yet they operate largely outside the formal regulatory perimeter. That creates real risks for retail investors who have no clear recourse when things go wrong, and it leaves legitimate operators in a legal grey zone that discourages institutional participation.
A regulatory framework — if well designed — would give users clearer protections, bring compliant exchanges into a supervised ecosystem, and allow Colombia to position itself as a thoughtful regional leader in digital asset governance.
The Hard Questions That Remain
The challenges are equally real. Crypto regulation is technically complex, moves fast, and requires expertise that many regulatory bodies are still building. There is a risk that rules written today become outdated before they are even enforced — or worse, that they are written in ways that entrench incumbents and close the door to future innovation.
The bill must also navigate the line between consumer protection and excessive restriction. Overly burdensome compliance requirements could push activity offshore rather than bringing it under domestic oversight — the opposite of what the legislation intends.
I shared my full assessment with El Tiempo, Colombia's leading newspaper. Read the complete article below.