They are not illegal in Colombia. However, regulators such as financial regulators have led to the paralysis of portals and associated markets. As of April 1, transactions with Bitcoin (BTC) over $150 (or 590,000 pesos) must be reported to the Financial Information and Analysis Unit (Uiaf), which is affiliated with the Ministry of Finance. Cryptocurrencies cannot be considered legal tender and vulnerable to debt cancellation. The end of the pilot plan does not mean that the financial regulator will immediately regulate the operation of digital assets in the country, it is simply a space of control and surveillance where the behavior of Colombians in the face of this innovation can be analyzed and decisions can be made that benefit consumers. #blockchainlawyer #blockchaininternationallawyer #cryptocurrency #FerrerBonsomsySanjurjo #bitcoinlawyer #blockchain #blockchainnews Bitcoin is not an asset that corresponds to legal tender in Colombia, as it has not been recognized as currency in the country. In summary, it is clear what challenge the Financial Supervisory Authority of Colombia, the Bank of the Republic, DIAN, UIAF and other entities, as well as the Congress of the Republic, are facing to analyze, develop and implement a legal framework in line with the accelerated growth of crypto assets worldwide (if there is room for this), thus enabling secure transactions that carry out operations for illegal activities such as money laundering and terrorist financing. minimize. According to Juan Carlos Arbeláez, Partner for Tax and Legal Services at Crowe Colombia, “While it is clear that access to these transactions with crypto assets affects a small percentage ± of the world`s population and a minimum in Colombian territory, it is still a tax objective for DIAN, a company that has its eyes on the audit processes for this type of operation. Of course, count on the 4.0 tools it already has at its disposal to deal with sophisticated patterns of cutting-edge technology. Although Bill 139 of 2021 (which is still under discussion) does not intend to consider bitcoin to be legal tender, as is the case in El Salvador, it aims to ensure that cryptocurrencies are characterized as virtual assets “with the susceptibility of being used as a means of exchange of goods and services.” without the state having any influence or control over the value of the various tokens. This point has met with resistance and which, in the opinion of its rapporteurs, aims to guarantee the principles of the free market and free competition.
The SF further pointed out that the Colombian peso is the only legal tender and that the Banco de la Repãºblica has the exclusive power to spend money in Colombia. Once the new Bitcoin bill is ready, a process of collecting signatures across the country will begin. This with the idea that the document arrives at the Congress of Colombia with the support of citizens, as Camilo Suárez, president of AsoBlockchain, told CriptoNoticias. On the other hand, various entities have issued more favorable concepts from which it can be concluded that crypto assets are legal assets on Colombian territory. These entities include the DIAN (Concept 20436 of 2017), which states that the activities of creating and transferring crypto assets are income-driven; the Superintendence of Enterprises (official letter 100-237890 of 2020) emphasized that crypto assets can be provided to the company in kind; and finally, the Technical Council of Public Accounting (Concept 977 of 2017) pointed out that crypto assets can be assimilated to an inventory or a financial asset. The FS also refers to the famous âMT. The Case of Goxâ, one of the well-known transaction platforms for virtual currencies, which was shut down in 2014 and caused heavy losses to users. This platform was one of the first to shut down crypto and Bitcoin worldwide. The Colombian bill on bitcoin and blockchain is one step away from the light, according to the director of the association, which brings together entrepreneurs in the blockchain ecosystem. It is currently being evaluated by a technical committee composed of lawyers and other specialists.
The power of liberation refers to the power that a currency has to cancel bonds or debts, which is a special and unlimited attribute of the common currency. Given that cryptocurrencies do not have legal status for payments in the country, Uiaf fears that this flaw could become a way to circumvent controls on financial movements. Once it is ready, the Bitcoin law will be widespread and the community will be informed where it will be available to read, as well as where it can sign and support the initiative. At the Colombian level, we do not have legislation from the Congress of the Republic that specifically regulates cryptocurrencies, although there are general regulations such as the Financing Law (Law 1943 of 2018), which offers certain tax advantages to companies involved in the development of technological added value. However, within Congress, Bill 268 of 2019 will be introduced, which regulates crypto asset exchange services offered through crypto asset exchange platforms, which we hope will be discussed and sanctioned as law in the near future. In Colombia, Bitcoin`s place in the financial system is not yet fully resolved, as crypto assets are not yet considered money for legal purposes. And is that although some exchange platforms are currently authorized by the state to authorize cryptocurrency transactions, according to the concept shared between organizations such as the Bank of the Republic, the DIAN or the Financial Supervisory Authority, cryptographic assets that have not yet been recognized as currency by an international monetary authority or that are not supported by central banks, nor do they count as currency in the country. The warning could prove uncomfortable for cryptocurrency users who are looking for a currency exchange system that allows them to have privacy, away from government and corporate controls. In addition, the measure would increase the cost of trade in terms of compliance with the legislation and increase the barrier to entry for new businesses. On January 28, 2022, the Directorate of National Taxes and Customs Duties – DIAN announced its press release No. 009, mentions that it has decided to take measures that allow the control of taxpayers carrying out transactions with cryptocurrencies, as it was found that some would evade their tax liability by being inaccurate or not reporting income from transactions with cryptocurrencies such as Bitcoin. “The sub-functionalities offered by the authorities in relation to this regulation are certainly not enough, so it is very important that the national government and all related companies continue to work in this regard to increase the interest©of young investors, digital entrepreneurs and even the fintech ecosystem, not to mention the traditional banking system.
open new avenues for future companies that legally promote the country`s economic growth,” concludes Juan Carlos Arbeláez. There is not much time left for the law, which requires reports to exchanges and people in Colombia on transactions with Bitcoin and other cryptocurrencies made on behalf of customers, to come into force. In concept No. 20348 of 2016, they stated that the only means of legal tender in the country is the Colombian peso. With the latent growth of cryptocurrencies or cryptoassets, it has become an essential task for governments to design, develop and implement rules that regulate this type of currency that allow the safe exchange of these assets by consumers and avoid harmful and illegal practices such as terrorist financing or money laundering. This article aims to explain the Colombian legal framework for cryptocurrencies. Recently, the Ministry of Finance, in collaboration with the Financial Supervisory Authority, launched the Sandbox, a space that allows the development of business models related to financial innovation through an alliance between financial institutions such as Bancolombia or Movii and companies in the fintech sector such as Buda or Panda. At the crypto asset level, this space will make it possible to test digital transaction programs, i.e.
the deposit and withdrawal of crypto assets. The Uiaf Regulation aims to prevent illegal acts such as money laundering or terrorist financing. However, the use of cryptocurrencies in Colombia is completely legal and the measure is seen as a way to increase state control over digital assets. In fact, Colombia has proven to be the third country with the highest growth of Bitcoin (BTC) owners in the world.