The National Directorate of Taxes and Customs (DIAN), a body linked to the Ministry of Finance and Public Credit of Colombia responsible for the country’s fiscal security, will begin to inspect operations with bitcoin and other cryptocurrencies.
Second Publication the organ on Friday (28), the objective is to introduce mechanisms to combat tax evasion, money laundering and terrorist financing.
“Currently, operations with cryptocurrencies are a reality around the world and with the boom in the use of so-called virtual currencies or cryptocurrencies, DIAN has initiated actions aimed at inspecting taxpayers who carry out such operations,” the entity wrote.
The exchange of information, adds the body, is essential for the inspection of taxpayers to comply with the guidelines of the Organization for Economic Cooperation and Development (OECD) of mutual assistance in tax matters signed between Colombia and Finland.
The entity explains that in the aforementioned agreement, both authorities cooperate to ensure compliance with tax obligations in cryptocurrency operations carried out in the country, which facilitates progress and innovation in tax control actions that adjust to the new dynamics in which taxpayers operate. .
Cryptocurrencies in Colombia
The announcement by DIAN — which works similarly to the Brazilian Federal Revenue — comes about a week after the agency pointed out irregularities in the income tax for the year 2019 of two taxpayers who did not mention cryptocurrency transactions made through LocalBitcoins. They then had to pay fines for the omission, commented the website. Infobae.
According to the vehicle, Colombia has stood out as one of the markets in the Latin American region with the highest adoption of cryptocurrencies. According to the website, there are already hundreds of places in the country where you can pay for products and services with cryptocurrencies, mainly bitcoin.
Erick Rincón, president of the Colombia Fintech Association, said that up to $70 billion worth of cryptocurrencies are traded in the country monthly, the newspaper claims.
In December, Bancolombia, the largest banking institution operating in Colombia, partnered with US brokerage Gemini to offer direct purchase of bitcoin and other cryptocurrencies to selected customers.
Regarding blockchain technology, in July last year, Banco de la República, the central bank of Colombia, announced its engagement in a pilot test of issuance of blockchain-based securities.
According to the agency, the initiative seeks to verify the benefits of blockchain in the life cycle of a security, from issuance to maturity.
Participating in the pilot project are the Inter-American Development Bank (IDB), a global financial institution that supports investment projects, which operates from the US, and the Davivienda bank, one of the largest financial institutions in Colombia based in Bogotá.