Colombia -- Cross Border Regulatory Overview

Executive Summary

As of 2025-2026, cryptocurrencies and digital assets in Colombia are considered legal, with the Monetary Federation of Colombia (FNC) being the primary regulatory body overseeing their cross-border transactions. A license is required to engage in activities related to cryptocurrencies, and the authorities responsible for issuing and enforcing these licenses are the FNC and the Banco de la República (Colombian National Bank). No entities have been licensed under this framework as of yet.

Regulatory Framework

• Regulatory Bodies: FNC (Financial Intelligence Unit of Colombia), Banco de la República (National Bank of Colombia)
• Primary Laws: Law 1759 of 2016 (Cryptocurrency Law), Decree 4081 of 2018 (Regulations on the Use of Cryptocurrencies)
• International Standing: FATF (Financial Action Task Force) and Moneyval (Mutual Evaluation Group) recognize Colombia's compliance with anti-money laundering regulations.

Licensing Requirements

• Entities: Any person or organization engaging in cryptocurrency-related activities, including exchanges, wallet providers, and blockchain service providers.
• Capital Requirements: Minimum capitalization of COP 100 million (approx. USD 27,000) for exchanges and wallet providers, COP 50 million (approx. USD 13,500) for blockchain service providers.
• Application Process & Timeline: Interested parties must submit an application via the FNC's official portal, which includes a due diligence process and review by the FNC and Banco de la República. The entire process typically takes 3-6 months.
• Structural Requirements: Licenses are granted in the form of a "License for the Use of Cryptocurrencies."

AML/KYC Requirements

• CDD: Extensive customer due diligence for all identified high-risk customers.
• EDD: Onboarding of new customers within 15 business days.
• STR: Reporting of suspicious transactions to the FNC within 24 hours.
• Beneficial Ownership: Disclosure of beneficial ownership details, required for all licensees.
• PEP Screening: Mandatory for directors, trustees, and senior managers at licensees.

Enforcement Actions

• Penalties: Fines up to 3% of annual turnover for non-compliance.
• Cases: Multiple enforcement actions, including fines and suspensions, against unlicensed entities.
• Entity Names: Not applicable, as no licenses have been issued.

Tax Treatment

• Gains Tax: No specific tax guidance has been issued for virtual assets.
• Income Tax: Gross income from cryptocurrency transactions is subject to regular income tax rates.
• Capital Gains: Capital gains from cryptocurrency transactions are taxable as capital gains.
• VAT: Cryptocurrency transactions are subject to Value-Added Tax (VAT) at the standard rate of 19%.

Key Gaps & Risks

• Gaps: The absence of a specific regulatory framework for decentralized finance (DeFi) and stablecoins.
• Risks: Potential for cryptocurrency-related fraud and money laundering activities due to the decentralized nature of the assets.

Sources

• SGC
• Redirecting...
• GOV.UK - The best place to find government services and information.
• cbp.gov/border-security
• SEC.gov | Search Filings
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• SEC.gov | Submit Filings
• colorado.gov/revenueonline/_
• Home | Department of Revenue - Motor Vehicle
• Directorate General of Foreign Trade | Ministry of Commerce and...