Colombia Deals With Crypto Tax Evasion as Adoption Grows

Cryptocurrency adoption is thriving in Colombia, and the country’s tax authority, the DIAN, started catching up. DIAN started taking special measures to find cryptocurrency tax avoiders. The DIAN also stated it wants to regulate cryptocurrency space.

Government Admits Cryptocurrency Adoption Is Growing Globally

The Colombian government is aware of the increased adoption of cryptocurrencies worldwide. This is one of the reasons DIAN has taken action to control the taxpayers who work with digital assets.

Additionally, DIAN wants to establish a framework that would regulate cryptocurrency taxation. This framework would also include Colombian citizens who disregarded paying taxes on the cryptocurrency income and those that reported inaccurate statements.

Surprisingly, Colombia is a highly active country when it comes to cryptocurrency adoption. It’s the second-most dynamic Bitcoin trading country in Latin America. Additionally, it has hundreds of merchants and Bitcoin ATMs across the country. According to the Venezuelan newspaper El Nacional, there are 687 Bitcoin-friendly retailers in Colombia.

However, current laws state that financial institutions are not allowed to engage in any sort of trading or managing process with digital assets. Still, Colombian citizens can invest in crypto, and some organizations are working on improving the adoption of digital assets in Colombia.

In March 2021, one of Colombia’s oldest banks announced it would explore crypto-related services, and a few other significant partnerships occurred, allowing banks to work with crypto.

Still, so far, the DIAN’s announcement is mainly aimed at those who avoid paying taxes from crypto gains.