Is Crypto Legal In Colombia?

Cryptocurrency is legal in Colombia but operates in an unregulated environment without specific legislation governing digital assets. The Banco de la República, Colombia's central bank, has stated that cryptoassets are not considered legal tender, money, or securities under Colombian law, meaning transactions involving cryptocurrencies do not receive the same treatment as those conducted with Colombian pesos (1). While cryptoassets lack regulatory oversight from financial authorities, they are not explicitly prohibited, allowing individuals and businesses to buy, sell, and use them without formal authorization (1).

The Financial Superintendency of Colombia has maintained a restrictive stance toward traditional financial institutions, prohibiting supervised banking entities from holding custody of, investing in, or facilitating transactions involving digital assets. Through various circular letters since 2014, the SFC has explicitly stated that financial entities' platforms should not be used for cryptoasset transactions and urged implementation of robust anti-money laundering measures (1). However, the regulatory sandbox program that operated until December 2023 allowed limited experimentation between banks and crypto service providers, though it concluded without subsequent regulatory amendments (1).

"Most of the so-called cryptocurrencies are not obligations legally recognised by a legal person or institution that backs them and that responds for any fraud or failure in their schemes."

Colombia's tax authority, the Dirección de Impuestos y Aduanas Nacionales, treats cryptocurrencies as intangible assets that must be declared on annual income tax returns and valued according to equity principles. The central bank has clarified that while individuals are free to accept cryptocurrencies as payment, creditors have no legal obligation to do so, and users must bear all risks since cryptoassets lack central bank backing (2). In October 2022, the central bank announced studies regarding a potential Central Bank Digital Currency to facilitate instant digital payments, though no concrete timeline has been established (2).

Source:
https://cms.law/en/int/expert-guides/cms-expert-guide-to-crypto-regulation/colombia
https://www.banrep.gov.co/es/publicaciones-investigacion/documento-tecnico-criptoactivos

Last updated: 18-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.