Crypto Users and Exchanges Must Now Report Transactions in Colombia


The Colombian authorities has issued new rules that pressure exchanges and people to report cryptocurrency transactions to the UIAF, the anti-money laundering watchdog in Colombia. The transactions have to be reported through an internet reporting system, and exchanges shall be required to concern periodic experiences of suspicious transactions made by customers.

Colombia Tightens AML Controls

New rules that direct customers and exchanges to report cryptocurrency transactions over a specific amount have been authorised in Colombia. Resolution 314 establishes that cryptocurrency transactions over $150, or cryptocurrency transactions made with a number of tokens whose worth goes over $450, must be reported to the UIAF, the anti-money laundering watchdog in Colombia.

This new regulation, which is able to take impact on April 1st, seeks to result in better management over what is going on with cryptocurrency belongings within the nation and cease potential cash laundering and terrorism financing actions that could possibly be leveraging these belongings to go unnoticed. Regarding this, the decision states:

Virtual belongings have created a state of affairs that deserves the intervention of the UIAF, to the extent that, though they’re operations that in Colombia are usually not unlawful by themselves, they will lend themselves to illicit actions, because of the anonymity or pseudonymity within the transactions utilizing them.

Exchanges can even must concern a report of suspicious transactions that will ship the UIAF an in depth listing of operations thought of uncommon, and the customers that effected them.

Penalties and Regulatory Advancements

The legislation additionally establishes penalties for exchanges and people who fail to adjust to these directives. If cash laundering is detected in these actions, noncompliant customers must pay between 100 and 400 minimal month-to-month wages, with different fines deriving from these crimes.

Resolution 314 states that in 2019, the bitcoin nationwide market registered transactions for $124 million, nearly 1.7 instances the quantity registered in 2018. This development precipitated concern within the authorities about the usage of these belongings for unlawful functions because of the newfound liquidity in these markets.

However, the crypto oversight of the establishments in Colombia has additionally reached the tax atmosphere. The DIAN, which is the tax regulator of the nation, announced not too long ago it was taking measures to detect tax evasion concerning the usage of cryptocurrencies for buying and selling or transacting.

What do you concentrate on the brand new necessities crypto customers and exchanges face in Colombia? Tell us within the feedback part under.

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