No Regulations, No Problem. Colombia Looking to Tax Bitcoin Users

As previously reported by CCN, the Superintendencia de Sociedades, an organization associated with the Colombian Ministry of Commerce, has in the past announced that digital currencies arent allowed in Colombia, including bitcoin. The only valid currency in the country is the peso.

The announcement was made by Francisco Reyes Villamizar, who assured Colombians that the only entity allowed to issue money in Colombia is the Banco de la Repblica, the countrys central bank.

Now, thanks to bitcoins growing popularity, the Colombian government seemingly wants something to do with the cryptocurrency, as trading volume keeps growing, according to data from Coin.Dance,despite it lacking a legal framework in the country.

Those who invest in bitcoins, according to Colombian publication La Rpublica, need to declare their earnings because its a high-risk investment in the governments eyes. Being an investment, its taxable. Analysts the publication polled claim that the fact the government didnt release an official statement on these investments, doesnt exempt investors from declaring their earnings.

Attorney Juan Sebastin, according to PanAm post, stated that people need to report their cryptocurrency investment profits on their tax returns. Since bitcoins are a part of peoples assets, the attorney stated, they need to follow corresponding tax rules. He also claimed that the cryptocurrency raised concerns among tax authorities in other countries because its semi-anonymous nature allows people to evade paying taxes.

Moreover, bitcoin expert Johnathan Alexander Higuera, stated:

Currently, in Colombia, people are not required to report their investments or transactions in Bitcoins or any other cryptocurrency, so it can be used to evade taxes. Users can invest in this virtual currency through platforms such as Kraken, Bitstamp, Localbitcoins and Poloniex

On the other hand, director of the Colombian Bitcoin Foundation Carlos Mesa, pointed out that the Dian (Direccin de Impuestos y Aduanas Nacionales de Colombia) hasnt clarified anything and, as such, bitcoiners who do want to declare their earnings dont know how to proceed.

Nevertheless, reports suggest the Financial Superintendence of Colombia is planning on implementing tax rules over earnings generated through the sale of cryptocurrencies, despite the lack of regulations.

The Colombian government isnt the only one trying to cash in on bitcoins growing popularity, after warning people not to invest in the cryptocurrency a few years ago. As reported by CCN, the Portuguese government also wants to tax bitcoins, despite a lack of regulations in the country.

According to the countrys Ministry of Finance, as long as cryptocurrency earnings come from a professional or business activity, these should be declared and taxed. On the other hand Japan, a country that decided to legalize bitcoins, recently ended an 8% consumption tax on the cryptocurrency.

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No Regulations, No Problem. Colombia Wants to Tax Bitcoin Users - CryptoCoinsNews