Colombia's Crypto Assets: Legal but Struggling

In Colombia, I personally experienced the awkward situation of Crypto Assets. Here, Crypto Assets are not illegal, but the regulations are incredibly frustrating! Take my friend Carlos, for example; he bought some bitcoin last year hoping to profit from the price difference. Watching the price rise, he couldn't stop smiling, but when he tried to transfer the money out through the bank, he was dumbfounded!

Those bankers refuse to deal with crypto-related transactions like they are avoiding the plague. Financial regulators have given banks a strict order not to touch these "dangerous" digital assets. So what is the result? Everyone can only use cash for transactions, doubling the risk, as if we have returned to the gangster era of dark alley trading.

A few weeks ago, I went to a café that accepts Bitcoin payments, and the owner complained that tax issues were giving him a headache. According to DIAN regulations, Crypto Assets income must be reported, but there is no clear classification! The accounting records are a complete mess. He said with a wry smile: "The government neither prohibits us from using Crypto Assets nor provides us with reasonable tools to use them."

The attitude of the Colombian government is truly speechless. On one hand, they are afraid to completely oppose innovation, while on the other hand, they are shutting down the financial system and leaving no way out. This kind of double-faced approach will only force everyone to seek solutions in gray areas, which in turn increases the difficulty and risk of regulation.

Ironically, in the context of severe inflation and unstable pesos, many ordinary Colombians view Crypto Assets as a means of preserving value, but they have to take various risks to use it. I always feel that instead of this half-hearted regulation, it would be better to show some courage and not leave the public in such an awkward situation.