This is very interesting from a technical perspective! I think that in markets where traditional financial products have had limited penetration, such as Latin America, this sort of LCO set-up could allow both businesses and technically savvy investors to 'leap-frog' over entrenched interests and, in some cases, government regulations, likely to the benefit of all parties involved.
I am very interested in learning more! According to my interpretation of the law here, this model would work for a company in Colombia.1
The financial superintendent would regulate these companies and since they already operate under these regulations, all of the relevant information is already transparent.
Hi @ecoinstant
I just came across to your reply. I followed the link you posted which took me to an article written by a well known law firm in Colombia.
What i know is that financial superintendent only regulates financial institutions. Non-financial companies are out of their scope, therefore are "free" to operate with cryptos, under the limitations of other laws, and probably without being transparent, unless they get supervised/regulated by superintendent of societies.
I'm a not a law expert, but I think there is a lot space for interpretation and misunderstanding. Sometimes Colombian laws are tricky so is better to look for an advisor in case you want to run a business related to crypto, like @blockshine
On the other hand, i feel Colombian banks don't like cryptos and can close your bank account, as happened with other people.
Hope this helps!!
I also want to learn more in the subject
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Thank you for this great response! Small steps are going to be very important to the first movers in Colombia and Latin America in general.
We do know that 'unregulated' freedom is not the normal state of the world, but until some companies start working I don't think any Colombian government is going to make moves to regulate or 'deal with' something that is not yet happening in the country. So it must be a company or a group that take on the challenge.
As you say, misunderstanding is such an important keyword in this space, because from my view there is not only quite a bit of misunderstanding around criptodivisas and blockchain, there are many levels of misunderstandings!
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I don't know of any company in Colombia that is doing an LCO, but I do think that the law would allow it. As I responded to @caribehub's great comment, I think that in Latin America in general, the private sector is going to have to take a tentative lead in the implementation of these new technologies, as the governments leave open spaces precisely because they are likely unwilling to take missteps trying to regulate activities and markets that are only beginning to take form in their territory.