The Colombian Tax Authority Tightens Control on the Use of Cryptocurrencies – Emerging Markets

DIAN, the Colombian tax authority, has announced that it is taking special measures to tighten controls on taxpayers who currently use cryptocurrencies for transactions. With these actions, the organization attempts to track down all taxpayers who used crypto assets and did not report these activities or reported them incorrectly. This action aims to thwart cryptocurrency-related tax evasion in the country.

The Colombian tax authority is taking action against tax evaders

The Colombian tax authority called DIAN has announced that its next target is tax evaders using cryptocurrencies. According to a PR statement published on January 28, the institution stated that it is taking a number of measures to tighten controls on taxpayers who use cryptocurrencies for transaction or trading purposes.

Although these measures were not explicitly disclosed, the measures aim to provide greater clarity on the movements of cryptocurrency users and traders in the country. The DIAN explained:

These measures are aimed at establishing tax control for omitted or inaccurate taxpayers who have not or inaccurately recorded the income generated from transactions with cryptocurrencies in their income and supplementary taxes.

The organization further explained that this is part of the Colombian state's policy to combat money laundering and terrorist financing. For this goal, the institution also announced that an agreement signed between Colombia and Finland that allows the free trade of information between the institutions of the two countries is crucial. Local Bitcoins one of the world's leading peer-to-peer (P2P)-based cryptocurrency exchanges, is based in Finland.

Colombia and crypto

The presence of cryptocurrencies in Colombia has been steadily increasing, although adoption is still low compared to other countries on the continent – ​​such as Venezuela or Argentina. However, there have been attempts to integrate crypto into traditional finance with the aim of facilitating the introduction of the new assets into the ecosystem.

A project called Crypto sandbox, allowed exchanges to partner with banks, giving cryptocurrency users the opportunity to make crypto purchases with the direct support of banking institutions. Also, Colombia ranks second in Latam for the highest number of cryptocurrency ATMs, just behind El Salvador, which increased its numbers due to the installation of Chivo wallet ATMs.

What do you think of the Colombian Tax Authority's statements on tax evasion related to cryptocurrencies? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price surge occurred in December 2017. He has a background as a computer engineer, lives in Venezuela and is affected by the cryptocurrency boom on a social level. He offers a different perspective on crypto success and how it helps the unbanked and underserved.

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