Colombia: Exchanges and Individuals Must Soon Report Crypto Transactions
New regulations issued by the Colombian government require exchanges and individuals to report cryptocurrency transactions to the UIAF, the anti-money laundering regulator in Colombia.
According to new regulations that direct users and exchanges to report cryptocurrency transactions over $150 have been approved in Colombia. Resolution 314 details that cryptocurrency transactions over $150, or cryptocurrency transactions made with multiple tokens with value over $450, will have to be reported to the UIAF, the anti-money laundering regulatory body in the country.
The transactions must be reported via an online reporting system, and exchanges will be required to issue periodic reports of suspicious transactions made by users.
This new regulation will come effect on April 1st, and aims to bring more control over what is happening with crypto assets in the country.
It also aims to stop possible money laundering and terrorism financing activities that could go unnoticed. The resolution states:
“Virtual assets have created a situation that merits the intervention of the UIAF, to the extent that, although they are operations that in Colombia are not illegal by themselves, they can lend themselves to illicit activities, due to the anonymity or pseudonymity in the transactions using them.”
Exchanges will also have to issue a report of suspicious transactions that would deliver the UIAF a detailed list of operations considered unusual, and the users that effected them.
Penalties for non-compliance
The new law also establishes penalties for exchanges and individuals for failing to comply with these new rules. If money laundering is detected in these activities, non-compliant users will have to pay between 100 and 400 minimum monthly wages, along with other fines.
According to resolution 314, the bitcoin national market in 2019 registered transactions for $124 million, almost 1.7 times the amount registered in 2018. This growth caused concern in the government about the use of these assets for illegal purposes due to the newfound liquidity in these markets.
The DIAN, which is the tax regulator of the country, announced recently it was taking measures to detect tax evasion regarding the use of cryptocurrencies for trading or transacting.
