As digital currency adoption in Colombia increases, the country’s tax authority is ready to crack down on BTC owners who evade taxes. In a recent statement acknowledging that digital currency adoption is booming in the country, the tax agency pledged to take action against tax evaders.
Like many other jurisdictions in Latin America and beyond, Colombia has yet to establish definitive regulations for the digital asset space. However, the country’s tax agency insists that all Bitcoin owners must pay taxes on their digital currency earnings, which the country considers an asset.
Known as the Dirección de Impuestos y Aduanas Nacionales de Colombia (DIAN), the agency revealed that measures are already underway to arrest traders who evade taxes. He did not reveal exactly what action he would take, but he issued a stern warning to those who failed to report their tax obligations or under-reported them.
“Currently, transactions with crypto-assets are a reality all over the world and with the boom in the use of so-called virtual currencies or crypto-currencies, the DIAN has initiated actions aimed at controlling taxpayers who carry out transactions with them,” DIAN said in its statement. .
“These actions are intended to establish a tax audit for omitted or inaccurate taxpayers who, in the income tax and supplementary tax, have not recorded income from operations with cryptocurrencies or have recorded it from inaccurately,” he added.
Colombia has seen some of the highest adoptions of digital currencies in the Latin American region. And although the sector is not as big as in Argentina or Venezuela, it has grown aggressively in recent years. The country boasts of having the second highest number of digital currency ATMs in the region after El Salvador, whose ATMs sprang up to implement President Nayib Bukele’s misguided initiative.
While Colombia has laws that prohibit financial institutions from offering digital currency services, banks in the country have partnered with some virtual asset service providers to slowly integrate some digital currency services into their systems in the meantime. new regulatory guidelines.
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