The Colombian money laundering watchdog, the UIAF, has postponed the date for exchanges and individuals to start reporting their transactions to the organization. The institution is now opening a consultation period for businesses and individuals to express their views on the proposed regulation, which may be amended before its application on June 1.
Colombian watchdog postpones transaction report resolution
The UIAF, the organization that monitors and detects money laundering and terrorist financing activities in Colombia, has postponed a resolution deferring the obligation for exchanges and individuals to report some cryptocurrency transactions. The Colombian unit will receive these reports on June 1 instead of April 1 when it was established earlier.
The exact reasons behind the delay were not specified in the document, but the new resolution establishing the delay states:
To ensure that the submission of reports to the UIAF is complete and meets the entity’s information needs, the need to extend the reporting start date was considered.
The new resolution also states that organizations that have submitted all of their reports can still submit them voluntarily, but there will be no penalties if they fail to submit them by June 1. This gives more time to adapt to the rule enacted in December 2021 with resolution 314, while the organization receives comment from various groups on the matter.
Objective and Critical
The UIAF considered the need for oversight of cryptocurrency transactions in Resolution 314, which requires established subjects to report single transactions worth more than $150, or groups of transactions worth more than $450. To this end, the Colombian organization stated that:
Virtual assets have created a situation that merits the intervention of the UIAF, to the extent that, although they are operations that are not illegal in Colombia in themselves, they can lend themselves to illegal activities, due to the anonymity or pseudonymity in the transactions, the absence of central bank support and non-recognition as a liberating tool.
However, this resolution has come under heavy criticism from several crypto-related personalities in the country, who oppose the massive amount of data to be delivered to the institution. Among them is Alejandro Beltran, Buda.com country manager for Colombia, who stated:
Reporting starting at $150 would consider a large number of trades, and the other associated data goes well beyond the information the exchanges themselves can process about the operations.
What do you think about the delay in the implementation of the resolution for reporting crypto transactions in Colombia? Tell us in the comments below.
Sergio is a cryptocurrency journalist based in Venezuela. Describing himself as late in the game, he entered the cryptosphere when the price surge happened in December 2017. With a computer engineering background, living in Venezuela and influenced by the cryptocurrency boom on a social level, he offers a different point of view on crypto success and how it helps the unbanked and underserved.
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