The Colombian government has issued new regulations that require exchanges and individuals to report cryptocurrency transactions to the UIAF, the anti-money laundering watchdog in Colombia. Transactions must be reported through an online reporting system, and exchanges will be required to publish periodic reports on suspicious transactions made by users.
Colombia strengthens AML controls
New regulations requiring users and exchanges to report cryptocurrency transactions above a certain amount have been approved in Colombia. Resolution 314 establishes that cryptocurrency transactions over $150, or cryptocurrency transactions made with multiple tokens whose value exceeds $450, will need to be reported to the UIAF, the anti-corruption watchdog. money laundering in Colombia.
These new regulations, which will come into force on April 1, aim to strengthen control over what happens with cryptocurrency assets in the country and prevent possible money laundering and terrorist financing activities that could take advantage of these assets to go unnoticed. In this regard, the resolution states:
Virtual assets have created a situation that merits the intervention of the UIAF, since, although they are operations that in Colombia are not illegal in themselves, they can lend themselves to illicit activities, due to the anonymity or pseudonymity of transactions using them.
Exchanges will also be required to issue a Suspicious Transaction Report which will provide the UIAF with a detailed list of transactions considered unusual and the users who made them.
Sanctions and regulatory advances
The law also provides penalties for exchanges and individuals who do not follow these guidelines. If money laundering is detected in these activities, non-compliant users will have to pay between 100 and 400 minimum monthly wages, with other fines arising from these crimes.
Resolution 314 states that in 2019, the national bitcoin market recorded transactions for $124 million, almost 1.7 times the amount recorded in 2018. This growth has raised concerns within the government about the use of these assets for illegal purposes due to the liquidity found in these markets. .
However, the crypto surveillance of institutions in Colombia has also reached the fiscal environment. The DIAN, which is the country’s tax regulator, recently announced that it is taking steps to detect tax evasion regarding the use of cryptocurrencies for commerce or transactions.
What do you think of the new requirements facing users and crypto exchanges in Colombia? Tell us in the comments section below.
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