Prohibition Does Not Guarantee the Industry's Safe Growth

Financial Services attorney Camilo Gantiva Hidalgo participated in a Q&A with La República about the importance of establishing a comprehensive regulatory framework for stablecoins and other digital assets in Colombia. Camilo explained that their growing use for dollar-denominated savings, international transfers and other payments has outpaced local regulation, leaving banks and financial technology (FinTech) companies without clear standards for operating in the market. He recommended that Colombia establish requirements for licensing, cybersecurity, business continuity, operational risk and customer identification, supported by ongoing supervision. He also discussed how alignment with international standards could provide greater certainty for financial institutions and users, facilitate connections with the U.S. market and bolster Colombia's position within Latin America's digital assets market.

"Colombia is a regional leader, but it needs general regulation so as not to lose ground," he said. "The solution is not to prohibit, but to strengthen the authorities with clear rules."

READ: Prohibition Does Not Guarantee the Industry's Safe Growth