The Colombian government has issued new regulations that force 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 issue regular reports of suspicious transactions made by users.
Colombia tightens AML controls
In Colombia, new regulations have been approved that order users and exchange houses to report cryptocurrency transactions above a certain amount. Resolution 314 establishes that cryptocurrency transactions greater than $150, or cryptocurrency transactions made with multiple tokens whose value exceeds $450, must be reported to the UIAF, the anti-money laundering control body in Colombia.
This new regulation, which will come into force on April 1, seeks to achieve greater control over what happens with cryptocurrency assets in the country and curb possible money laundering and terrorist financing activities that could be taking advantage of these assets to pass unnoticed. In this regard, the resolution establishes:
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 pseudonym in the transactions using they.
The exchanges will also have to issue a suspicious transaction report that would provide the UIAF with a detailed list of the operations considered unusual and the users who carried them out.
Sanctions and Regulatory Advances
The law also establishes penalties for exchanges and individuals who fail to comply with these directives. If money laundering is detected in these activities, offending users must pay between 100 and 400 monthly minimum wages, with other fines derived from these crimes.
Resolution 314 establishes that in 2019, the national bitcoin market registered transactions for $124 million, almost 1.7 times the amount registered in 2018. This growth generated concern in the government about the use of these assets for illegal purposes due to the new liquidity in these markets. .
However, the crypto surveillance of institutions in Colombia has also reached the tax field. The DIAN, which is the country’s fiscal regulator, Announced Recently, it was taking measures to detect tax evasion regarding the use of cryptocurrencies to trade or carry out transactions.
What do you think about the new requirements facing crypto users and exchanges in Colombia? Tell us in the comments section below.
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