Name
Global FinTech Guide
Country _ Name
Colombia
SectionTitle
DLT and cryptocurrencies
Body
FinTechs belonging to this category offer financial services using crypto currencies. This category also includes FinTechs utilising blockchain and distributed ledger technologies (DLT) upon which Bitcoin and Ethereum are based, among others. FinTechs develop and do research in this field in order to create new services – e.g. crypto currency exchange markets, wallet providers, NFTs-related services, new payment services, "smart contracts" or new clearing and settling services.

Introduction

Attitude of the country towards financial services using crypto currencies

Colombia has rapidly emerged as one of Latin America’s leading markets for cryptoassets and blockchain-based financial services. More than five million Colombians currently transact with cryptocurrencies, driving a total of USD 6.7 billion in crypto transactions in 2024. Colombia ranks fifth in the region for cryptocurrency usage , which underscores the growing appetite for decentralized financial solutions among individuals and businesses alike. This widespread adoption highlights a clear demand for modern alternatives to traditional banking services, especially for cross-border payments, remittances, and investment diversification.

However, despite this strong adoption, the Colombian government’s attitude has remained cautious but increasingly proactive. Authorities acknowledge the scale of crypto operations and the risks they entail. This is why new legislative initiatives aim to provide a clear framework for Virtual Asset Service Providers (VASPs), without recognizing cryptoassets as legal tender or securities. The intent is to formalize the crypto ecosystem, enhance AML/CTF oversight, ensure user transparency, and facilitate VASPs’ access to regulated financial services, all while balancing innovation with stability. In this context, Colombia’s stance combines openness to blockchain adoption with a commitment to safeguard market integrity and protect millions of local users who are already part of the digital asset economy.

In the same line, a regulatory sandbox (LaArenera) conducted by the SFC allowed crypto exchanges to partner with regulated financial institutions, testing the secure integration of these platforms into the formal financial system. The results were positive, with exchanges meeting high standards in cybersecurity, customer service, and AML compliance, aligned with FATF guidelines.


Legal affairs

Obligations and requirements to provide financial services using crypto currencies described above

As of today, Colombia does not have specific legislation or a comprehensive regulatory framework for cryptoassets or service providers operating in connection with them. However, various authorities have issued opinions, circulars, and official statements that provide an important interpretative framework. These entities have generally adopted a cautious approach, focusing on consumer protection, anti-money laundering, and financial system stability.

The Financial Superintendency of Colombia (SFC), through Circular 52 of 2017, clearly stated that regulated financial institutions are not authorized to custody, invest in, broker, advise on, or carry out operations involving virtual assets, nor to allow their infrastructure to be used for such purposes, including transactions on exchanges.
The Central Bank, in opinion JDS-27301 dated December 22, 2017, emphasized that cryptoassets are not legal tender in Colombia and do not fulfill official roles as units of account, means of payment, or stores of value. Therefore, they cannot be used to fulfill monetary obligations. The Bank has also warned about their lack of institutional backing, high volatility, limited liquidity, and non-compliance with international standards from the IMF and BIS.

The Colombian Tax Authority (DIAN) considers cryptoassets intangible goods that are part of a taxpayer's wealth and may generate taxable income.

The Superintendency of Companies has recognized the risks of investing in cryptoassets. However, it has allowed them to be classified as intangible assets and authorized companies to include the purchase and sale of cryptoassets in their corporate purpose. In concept 220-089315, it established that companies must act with maximum diligence to avoid money laundering and terrorism financing. They must also ensure compliance with fundraising rules to prevent illegal activities.

Additionally, the Legal Basic Circular of the Superintendency of Companies, in Section 4.2.6 of Chapter X, states that virtual asset service providers (VASPs) whose operations exceed certain thresholds must implement a SAGRILAFT (risk management system) with specific AML/CTF/FPADM policies and procedures. These obligations apply to companies providing virtual asset services that (i) have operational activities exceeding 100 current legal monthly minimum wages (SMLMV), or (ii) recorded total income equal to or greater than 3,000 SMLMV, or (iii) hold assets equal to or greater than 5,000 SMLMV in the previous year, when such income or assets derive from activities including exchange or transfer of virtual assets, custody or administration of virtual assets or instruments enabling control over them, or participation in and provision of financial services related to the offering or sale of a virtual asset by an issuer.

Finally, a bill introduced in the House of Representatives on February 25, 2025, seeks to regulate VASPs in Colombia to formalize the crypto ecosystem, promote blockchain adoption, and strengthen consumer protection, without recognizing cryptoassets as legal tender or securities. The bill defines a VASP as any individual or legal entity, domestic or foreign, that habitually and professionally provides virtual asset services (such as custody, trading, advisory, or portfolio management) to parties located in Colombia. Whether an activity is habitual will be assessed according to the same criteria the Superintendency of Companies uses to determine SAGRILAFT compliance obligations. While the bill does not directly regulate cryptoassets or blockchain technology, it does impose obligations related to transparency, data protection, user education, and reporting to the UIAF. It also facilitates access for VASPs to financial services offered by institutions supervised by the SFC or the Superintendency of the Solidarity Economy. Importantly, the bill creates a VASP Registry under the exclusive supervision of the Superintendency of Companies, which will oversee compliance. Existing VASPs will have 12 months to register, while new providers must complete registration within a year of starting operations.

Additional comments regarding the legal situation for financial services using crypto currencies or what FinTech’s must be aware of in this business area

N/A


Economic conditions

Market size for financial services using crypto currencies and biggest companies in this business area

In Colombia, the cryptocurrency market has maintained its upward trend, recording a 17% year-over-year increase during the reported period (the highest annual growth rate in the region). Colombia now has around 3.1 million active crypto users who carry out approximately 800,000 transactions daily, with a monthly traded volume exceeding USD 70 million. In terms of gender, women represent 26% of all crypto users in the country, matching the regional average.

Bitcoin remains the most held crypto asset, representing 47% of the average portfolio among Colombian users. Another relevant data point is the diversity of crypto holdings: by the end of the semester, 43% of users held one crypto asset, 21% held two, and 36% had portfolios with three or more, showing that more than a third of Colombian crypto users tend to diversify into at least three different cryptocurrencies. Major platforms in the Colombian crypto market include Binance, Bitso, and Buda.com.

Additional comments regarding the economic situation for financial services using crypto currencies or what FinTech’s must be aware of in this business area

Crypto currencies make it very easy to hide funds beyond Colombia, which is why it should be essential for the Colombian State to regulate this type of assets. It would be of great help in the fight against asset laundering and terrorist financing.

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