Fun

Colombian Financial Watchdog Says Local Firms Can Use Capital to Buy Bitcoin

News Feed - 2021-01-05 12:01:46

Colombian Financial Watchdog Says Local Firms Can Use Capital to Buy Bitcoin


The Superintendency of Corporations in Colombia has explained in an official note that companies in the country are legally allowed to buy cryptocurrencies, specifically bitcoin (BTC), to inject capital as long as they abide by local regulations. Colombian Watchdog: Local Firms Can Use Capital to Buy Bitcoin if Companies Demonstrate Tokens Are ‘Intangible Assets’


According to the publication, the Colombian watchdog pointed out that although crypto assets usage in the financial sectors is “still” not regulated, there are no legal prohibits to inject capital via bitcoin (BTC) – the only crypto asset mentioned in the document.


However, they clarified the tokens should meet the criteria of “intangible assets,” according to the definition granted by the country’s tax watchdog to cryptocurrencies, Directorate of National Taxes and Customs (DIAN), which reads as follows: From the patrimonial point of view, as these currencies correspond to intangible assets, capable of being valued, they form part of the patrimony and can lead to the obtaining of a (presumptive) income. According to the above, it can be concluded that virtual currencies are not money for legal purposes. However, in the context of mining activity, insofar as they are received in exchange for services and/or commissions, they correspond to income and, in any case, to goods that can be valued and generate income for those who obtain them as from be part of your patrimony and take effect in tax matters.


But the superintendency still warns Colombian companies who handle cryptos such as bitcoin should be aware of the “high risks” that it carries and “the lack of local of regulation that surrounds it.”


Companies Are Not Under Special Regulations When Converting Capital to Bitcoin


Moreover, the watchdog calls firms to abide by the principles of good faith and loyalty with their businesses when they deal with cryptocurrencies. They’re still legally liable in the case that crypto’s value suffers sudden value depreciation.


In fact, the Superintendency of Corporation reminds local companies that converting capital to bitcoin doesn’t grant them special regulations.


In the document, the Colombian entity mentioned the approval of a pilot program by the country’s government on September 22, 2020, that calls companies to test crypto transactions within the context of a regulatory sandbox approved by the superintendence.


What do you think about the current stance of local Colombian authorities towards cryptos? Let us know in the comments section below. Cannabis Dealer Forfeits $3 Million in Bitcoin — 6,000 More BTC Still Missing REGULATION | 1 day ago Miami"s Mayor Considers Putting Some of City"s Treasury Reserves in Bitcoin REGULATION | 1 day ago Tags in this story Bitcoin (BTC), Bitcoin regulation, colombia, crypto regulations, Cryptocurrencies, Latin America, latin america bitcoin, South America


Image Credits: Shutterstock, Pixabay, Wiki Commons Spot-markets for Bitcoin, Bitcoin Cash, Ripple, Litecoin and more. Start your trading here. Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

IMCoin (IMC) Flies High
IMCoin (IMC) Flies High PRESS RELEASE. IMCoin, known as the first Hybridcoin, closes a week with a record price increase in its history reaching a value of 1.83
Tesla’s SEC Filing Shows Bitcoin Fair Market Value of $191 Million
Tesla"s SEC Filing Shows Bitcoin Fair Market Value of $191 Million Tesla’s latest filing with the U.S. Securities and Exchange Commission (SEC) shows that the fair market va
Brian Quarmby2 hours agoZachXBT’s research cited in Canadian NFT rug pull class-action lawsuitAccording to court documents, the Boneheads team has been accused of breach of contract, misappropriating funds and misleadi
SEI Follows SUI; Token Charges Higher With 18% Rally — Is $0.65 Possible?
Este artículo también está disponible en español. A little over a year since its debut, the SEI token has experienced remarkable growth, looking to break into the top 50
PEPE Price Breaks Ascending Triangle To Target Another 20% Crash
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Bitcoin To $500,000: Standard Chartered Doubles Down On 2028 Target
Este artículo también está disponible en español. Standard Chartered’s global head of digital assets research, Geoffrey Kendrick, has reaffirmed his standout price fore
US Court Fines Bitmex’s Founders $30 Million for Operating Illegal Crypto Platform
US Court Fines Bitmex’s Founders $30 Million for Operating Illegal Crypto Platform The founders of Bitmex have been ordered to pay $30 million “for illegally operating a c
Review: Crypto.com’s Ruby Steel Prepaid Visa Card
Review: Crypto.com"s Ruby Steel Prepaid Visa CardA number of members in the cryptocurrency community, typically people who are paid in crypto assets, have tried a myriad of prepaid
Amaka Nwaokocha14 hours agoElon Musk praises pro-crypto Republican presidential candidateThe Tesla and SpaceX CEO said Republican party presidential candidate Vivek Ramaswamy is “very promising.“8650 Total views50 To
Indian Crypto Market Suffers Significantly — Experts Say Trading Volumes Unlikely to Recover Anytime Soon
Indian Crypto Market Suffers Significantly — Experts Say Trading Volumes Unlikely to Recover Anytime Soon Crypto trading volumes in India have plunged significantly this year. Th
Savannah Fortis13 hours agoBitcoin sails the seas: Sailor paints giant ‘B’ on boat to promote crypto across the wavesA captain from Brussels took his passion for sailing and Bitcoin and set sail on his Sato Boat pain
IMF backs Nigeria crypto adoption amid local SEC crackdown
Alek Hidell10 hours agoIMF backs Nigeria crypto adoption amid local SEC crackdownThe IMF recommendation sets out to remedy the macroeconomic challenges Nigeria faces while attracting global investment.5837 Total views10