The tax authority in Colombia is not backing down on Crypto-related and Bitcoin evasion as it tightens the screw against the crypto adoption backdrop. Visit at: bitcoinloopholeapp.com.
While the adoption of cryptocurrency continues to grow in Bogotá, DIAN, the Colombian tax authority is trying its best to catch up with the development. To this end, the agency is looking to take distinct measures to capture crypto tax evaders.
The DIAN via a statement published on Friday affirmed that it will be taking actions to better govern and regulate the crypto space while working towards a more transparent Colombia. The agency via the statement admits that the use of Bitcoin and other digital assets are browsing on a global scale.
According to DIAN, crypto-related transactions are presently executed worldwide and that is a reality one can’t deny. With the increase in the use and general acceptability of these crypto-assets, the agency can only look for ways to regulate taxpayers that use these assets for various operations.
To this end, the DIAN is looking to create a framework and structure that would help establish control on inaccurate or committed taxpayers. This category includes citizens of Colombia who fail to report earnings from crypto-related operations or those falsifying their data and records.
This new development from Colombia is quite surprising as the country is recognized to be an active supporter of crypto and Bitcoin adoption. According to data available, Colombia ranks the second most active on the list of countries trading Bitcoin in Latin America. The data was made available by Usefultulips.org, an online platform that monitors P2P Bitcoin trading across the globe.
On the other hand, Coinmap also has data that shows hundreds of ATMs and merchants rendering Bitcoin services across Colombian. Truly, according to El Nacional, the Venezuelan newspaper, there are more than 600 retailers across Colombia that are Bitcoin-friendly.
While hardcore supporters and libertarians of crypto may from at the regulatory attempts of the tax authorities, the move is widely believed to be rather not encouraging for crypto adoption. This latest news about the Colombia tax authority, DIAN, establishing a set regulation would indicate that the agency is in fact just getting ready for crypto.
At the moment, the regulations in Colombia forbids its financial institutions from investing, managing, brokering, or protecting crypto operations. But, the citizens of the country as well as few legacy financial institutions can invest and venture into crypto operations. Hence, they are now paving the way for broader crypto adoption within the county and have set up a program dubbed “gateway to South America.”
One of the oldest banks in Columbia, Banco de Bogotá, in March 2021 surprised a lot of incumbents as it announced its proposed venture into the crypto sphere. The bank stated that it would be exploring various services related to cryptocurrency as components of a sandbox regulatory project.
On the other hand, the Gemini trading company founded by the Winklevoss twins has also formed a partnership with Bancolombia, a rival bank to offer crypto trading services. The digital currency being traded include Ether (ETH), Bitcoin (BTC), Bitcoin Cash (BCH), and Litecoin (LTC).
It would seem so far that the Colombian authorities approve of cryptocurrencies as it decides to launch a crypto game for its young citizens. The game is said to teach young people the dynamics of both the crypto market and the stock market. It teaches young individuals how to invest, manage risk and increase their portfolios.
Looking at how proactive Colombia is around Bitcoin and the crypto market, it won’t be surprising to see the Latin American country become the next to adopt Bitcoin as legal tender. However, you mustn’t confuse things as this regulation from DIAN is not an anti-crypto campaign but a campaign against tax evasion.
No doubt the impact Colombia will play on the crypto market shortly is large as the country continues to establish itself in the crypto sphere. However, the country still has more work to do, it will need to increase adoption, trading volume as well as convince ministers of the government to take a crypto stance before any of that happens.