Colombia situation: Bitcoin is illegal, but it is charged

The Columbia tax is of the opinion that bitcoin may still be subject to taxes, even if the government has declared it illegal.

The ban continues

In a December 2016 release of the country's regulators, the bitcoin had been declared illegal. The decision came as a result of the large number of scam-associated cryptomonas.
The authorities have reported that the only formally recognized currency in the country is the Colombian peso issued by Colombian Banco De Republica.
Francisco Reyes Villamizar, head of the company's oversight agency, tried to discourage potential investors with various methods. Among other things, he also conveyed that the various virtual scams are often related to bitcoin.

Charging the bitcoin

However, bitcoin has gained interest over the last few years. Investors have become more and more oriented towards this market. According to Colombia's fiscal oversight agency, bitcoin investments are still some of the highest risk.
And if investments are possible, they are subject to taxation. But it is quite difficult to tax cryptomonade reserves. The government agency plans to implement a legal charging framework for bitcoin.
In this respect, prosecutor Juan Sebastian Peredo said that people should report in the tax returns the profits generated by cryptomonas.
With regard to the situation in the country, bittorin expert Jonathan Alexander Higuera forwarded the following: "In Colombia, people are not bound by the law to declare investments in bitcoin, nor the transactions they carry with cryptomonas. Thus, taxes can be avoided very easily. "

It is still gaining from the bitcoin

Due to the above, Columbia also wants to implement certain taxes for bitcoin investors. Even if the central bank still places the bitcoin out of the law, this detail will not stop the investors in any way.
Thus, the government intends to make efforts to tax investments and somehow manage to regulate profits from cryptomonas. State officials also hope that through these moves they will prevent some offenses, such as money laundering or tax evasion.