During the last couple of months, Bitcoin has been rapidly growing in terms of its popularity, which, in turn, also has had numerous effects on the way that governments perceive and regulate the cryptocurrency. While numerous countries have shown their support for Bitcoin, and begun measures such as eliminating taxation, or giving incentives to blockchain-based businesses, there are still regions which take the currency with a grain of salt.
With this aspect in mind, recent reports indicate that the Colombia Tax and Customs Office, recently announced that Bitcoin is taxable, regardless of the fact that not long ago, the Colombian Government has declared that Bitcoin isn’t even legal in their area of jurisdiction.
To put things better into perspective, we have to dig a bit deeper. In an announcement made back in December 2016, Bitcoin was declared as a not-legal tender, mostly due to the vast number of investment scams linked to the digital currency back then. With this in mind, authorities at that time, stated that the only legal tender being actively recognized in Colombia would be the Colombian Peso, which is used by the national bank of the country.
With time, however, interest in the digital currency has continued to grow, with numerous investors in areas from all around the world, including Colombia, beginning to invest actual capital in the financial trend.
In a recent statement, Alexander Higuera mentioned that: ‘In Colombia, people are not required to report their investments or transactions in Bitcoin, or any other cryptocurrency, therefore it can be used to evade taxes’.
Because of this possibility, it is likely that the Colombian government will aim to implement a couple of tax rules for investors in the digital currency. Regardless of the fact that the country’s central bank sees Bitcoin as not-legal, this fact alone cannot truly stop people from investing, and using the digital currency to carry out their very own transactions. Because of this aspect, the government is now looking for ways to tax these investments, but also regulate the profits coming from digital currency investments. Not only this, but it is also likely for a campaign meant to prevent bitcoin-related cyber-crimes to be carried out.
Based on everything that has been outlined so far, what do you personally think about the stance of Colombia on Bitcoin? Let us know your thoughts in the comment section below.