Governments are cracking down big time on ICO scams and the ones running them.
In a news release this morning it was reported that the Colombian government is starting to sour a bit on the virtual currency, Bitcoin.
Not because of anything to do with Bitcoin itself, but partly because of the number of scams being perpetrated because of them.
The Financial Superintendent of Colombia, Jorge Castano Gutierrez, has been speaking out lately warning citizens, as well as the banks, of the scams being run using virtual currencies. Most of them revolving around illegal fund raising activities.
Harsh punishments
Those involved with running Bitcoin pyramid schemes in Colombia could face up to 20 years of imprisonment according to Gutierrez.
Not quite as harsh as being put to death like in China:
https://steemit.com/ico/@jrcornel/be-careful-where-you-run-your-ico-scam-especially-if-you-are-in-china
However, still much harsher than most places in the world.
Gutierrez said he plans to target both the ones running the scams as well as the ones promoting them.
The promoters better make sure they know what they are promoting before they get involved...
Colombia's official stance on Bitcoin
As of right now, they have prohibited all banks from dealing in Bitcoins or any other virtual currency currently with no plans to regulate them in the near future.
However, Gutierrez also went on to clarify that Colombia has no intention of making Bitcoin illegal in his country either. As of right now they plan on allowing it in the country but have no plans of making it legal tender.
He had this to say on the matter:
“Bitcoin is not an asset that can be considered a currency because it does not have the support of the central banks of any countries”.
It sounds kind of like a catch-22. He doesn't want to accept it as an official currency because no one else is accepting it as an official currency. Does that mean if suddenly more countries start accepting, legalizing, and regulating it, Colombia would follow suit?
Probably so.
I imagine there are many countries that feel the same way.
We just need those first couple shoes to drop.
Japan was a big step in that direction, now we just need a couple more of the major players to go that route and the rest will likely follow suit.
Not regulated, not accepted, but not banned
Keep in mind that people are still free to use and transact in Bitcoins in the country and there doesn't seem to be any immediate plans to change that stance.
They just don't plan on making it legal tender either.
The number of people using and trading Bitcoins has been growing pretty steadily as of late. According to Localbitcoins.com the weekly volume of Bitcoins priced in Colombian Pesos was over 2 billion in the month of May.
Perhaps if that trend continues it will also force the government's hand?
Stay informed my friends!
Sources:
https://cointelegraph.com/news/colombian-government-still-does-not-recognize-bitcoin-as-a-legal-currency-head-of-finance
Image Sources:
https://en.wikipedia.org/wiki/Government_of_Colombia
http://reserlaw.com/white-collar-crime-attorney-oklahoma-city-edmond-moore-norman-reser-law/
https://coin.dance/volume/localbitcoins/COP
