Cumbia 3.0 – Colombia experienced a high increase regarding the adoption of cryptocurrencies over the past year. The country’s largest bank has already spoken in favor of Bitcoin trading and regulation is moving forward. DIAN, the Colombian tax authority, recently announced new measures to strengthen controls on taxpayers using cryptocurrencies.
Bitcoin, Colombia’s New Conquistador
Although their adoption is still low compared to other countries on the continent, the presence of cryptocurrencies in Colombia has been growing steadily in recent times. The integration of crypto into the traditional finance of the country is proof of that. As a result, Colombia recently recorded its first real estate purchase in bitcoins. The country also has the second largest number of cryptocurrency ATMs in Latin America. Indeed, El Salvador takes the top spot due to the introduction of Chivo Wallet ATMs.
Also, a project called Crypto Sandbox now allows nine exchanges to work tandem with the banks. Cryptocurrency users in Colombia can therefore make their crypto-purchases with the direct support of banking institutions. In short, the country is not lagging behind when it comes to cryptos. Emilio Pardo, the new country manager of the Bitso exchange for Colombia agrees.
“We are witnessing one of the most important moments in the adoption of cryptocurrencies in Colombia and in the Latin American region as a whole. This will not only benefit the Colombian financial ecosystem, but will also help educate and meet the needs of our customers and fellow citizens.”
Emilio Pardo, country manager of the Bitso exchange in Colombia
With this growth, the government is also adapting its regulatory framework to include and control cryptocurrency operations. Indeed, the Colombian tax administration announced on February 2, 2022 special measures. These measures aim to identify taxpayers who have previously made erroneous statements regarding cryptocurrencies.
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Fraudsters, target of the Colombian tax administration
The Colombian tax authority, called DIAN, has announced that tax evaders using cryptocurrency are its main target. According to a statement released on January 28, 2022, the institution said it was considering a series of measurements to tighten controls on taxpayers using cryptocurrencies for business purposes.
These measures aim to clarify crypto-asset transactions in the country. DIAN said:
” These actions are aimed at establishing a tax audit for taxpayers who, in the income tax and supplementary tax, have not recorded the income obtained from operations with cryptocurrencies or have recorded them inaccurately. »
The organization explained that this was part of the policies to fight against money laundering of money and the financing of terrorism. DIAN also announced an agreement signed between Colombia and Finland. This agreement allows the free exchange of information between the institutions of the two countries. It should be noted that Localbitcoins, one of the world’s leading peer-to-peer (P2P) cryptocurrency exchanges, is based in Finland and is very popular in Latin America.
The countries of South America, like Venezuela or El Salvador are at the forefront in the adoption of cryptocurrencies. If they are a good way to fight against inflation, it is obvious that a regulation imposes itself. From April 2022, Colombian users and exchanges will have to to announce transactions over $150 at DIAN. Although Bitcoin (BTC) will probably not replace the Colombian peso, perhaps in a few years Bogota will consider crypto wages, as was recently the case in Argentina.
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