Colombia Update: Blockchain guide and regulatory challenges

The application of emerging technologies (TE) is becoming more common and even their momentum comes from the same governments around the world. Indeed, regulators are reconsidering their approaches, adopting more agile and collaborative models to address the challenges posed by emerging technologies and the Fourth Industrial Revolution.

Particularly in Colombia, the Ministry of Information Technologies has published the “BLOCKCHAIN REFERENCE GUIDE…”, through which it intends to deliver tools and inputs to public entities so that they can implement blockchain in the digital transformation of the State and allow better interaction between citizens and services by the authorities.

Thus, from this guide we can see that the application of this technology is diverse within the state sector (voting systems, property registration, education, health) considering that the government is a great information manager in society.

However, it is important to note that the development of new technologies has also meant changes and challenges at the regulatory level, so the publication of this guide is an important step forward in this regard. However, it remains a difficult task to maintain a balance between driving innovation, protecting consumers or providing for or controlling the potential consequences of the application of these technologies.

As TEes evolve, governments are increasingly challenged to create or modify regulations and seek strategies to efficiently comply with and communicate to citizens. It is therefore key that regulatory rules cease to remain static and adapt to changing economic and social circumstances, however, this is not easy, given the existence of risks that entail the protection of other equally important rights for society.

In this context, we find that the Blockchain Guide published by the ICT Ministry made an effort to include some possible common risks and errors associated with the deployment of blockchain technologies, such as the protection of personal data, cyber security, financial controls, existing legal and regulatory compliance, among others. However, it is a generic guide, where entities will need to work with internal stakeholders to identify and prioritize the risks that are important to their deployment.

Clearly, the government has promoted technological innovation in the country, and that progress is being made towards creating results-based regulations. We hope that the implementation of Blockchain technology from the public sector under this guide will be successful and that regulations will continue to be issued to effectively balance citizens’ rights protection and innovation.

By Adriana Galeano, LLOREDA CAMACHO & CO, Colombia, a Transatlantic Law International Affiliated Firm.  

For further information or for any assistance please contact colombia@transatlanticlaw.com 

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