Colombia

## Retail Trading Status: Colombia

**Date:** 2025-06-26

**Topic:** Retail_Trading_Status

**Status:** Allowed-Regulated

**Narrative Explanation:**

Retail cryptocurrency trading is legally permitted in Colombia, but it operates within an evolving regulatory landscape that is increasingly moving towards a more defined framework, particularly concerning Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) measures. While cryptocurrencies are not recognized as legal tender or currency by the central bank (Banco de la República), and the Superintendencia Financiera de Colombia (SFC) has historically issued warnings about the risks associated with crypto assets, individuals are not prohibited from buying, selling, or holding them.

A significant development has been the implementation of a regulatory sandbox by the SFC, known as "laArenera," which allowed for pilot programs involving cash-in and cash-out operations for crypto assets through traditional financial institutions. This initiative aimed to better understand the crypto market and inform future regulatory approaches.

Furthermore, recent legislative efforts and regulatory circulars have focused on bringing crypto asset service providers (CASPs), including exchanges, under a more formal supervisory umbrella. In 2022, the Colombian Congress began discussing a comprehensive bill to regulate cryptocurrency trading platforms. While the final approval and full implementation of a dedicated crypto law are still in progress, existing regulations around AML/KYC have been extended to entities dealing with virtual assets.

The Unidad de Información y Análisis Financiero (UIAF), Colombia's financial intelligence unit, has issued resolutions requiring Virtual Asset Service Providers (VASPs) to implement AML/CFT systems and report suspicious transactions. This indicates a clear move towards regulating the sector, even if a complete, bespoke licensing regime for crypto exchanges is still being finalized. Therefore, while individuals can trade, the platforms facilitating these trades are increasingly subject to regulatory scrutiny and specific obligations.

**Relevant Text Excerpts and Sources:**

*   **Superintendencia Financiera de Colombia (SFC) & UIAF - Regulatory Sandbox and AML/CFT Focus:**
    While a specific law comprehensively regulating all aspects of crypto trading is still evolving, the SFC initiated a regulatory sandbox (laArenera) in 2021 to allow for controlled experimentation of crypto asset operations within the financial system. More concretely, the UIAF has taken steps to include VASPs under AML/CFT reporting obligations.
    *   **Excerpt (Summary):** The SFC's sandbox allowed for alliances between regulated financial entities and crypto exchange platforms to test crypto-to-fiat transactions. This initiative aimed to monitor and understand the risks and opportunities of crypto assets. Separately, the UIAF has issued resolutions (e.g., Resolution 314 of 2021 and Resolution 101 of 2020, though the latter was more general) that extend AML/CFT reporting requirements to entities dealing with virtual assets, obligating them to implement risk management systems.
    *   **Source (Conceptual - as direct links to sandbox conclusions or specific UIAF resolutions can be difficult to maintain, general regulatory body sites are provided):**
        *   Superintendencia Financiera de Colombia: [https://www.superfinanciera.gov.co/](https://www.superfinanciera.gov.co/)
        *   Unidad de Información y Análisis Financiero (UIAF): [https://www.uiaf.gov.co/](https://www.uiaf.gov.co/)

*   **Legislative Developments (Bill in Congress):**
    Colombia's Congress has been actively discussing a bill to regulate cryptocurrency trading platforms.
    *   **Excerpt (Summary of general understanding from various financial news outlets covering Colombia):** A bill (most notably Bill 139 of 2021 in the Senate and its counterpart in the House of Representatives) has been progressing through the Colombian Congress. The bill aims to establish a clear regulatory framework for crypto asset trading platforms, including licensing requirements, consumer protection measures, and AML/CFT obligations. While its final passage and enactment are pending and subject to the legislative process, its progression signifies a clear intent to regulate the sector.
    *   **Source (Example of news coverage, though specific bill status would need to be checked on congressional websites):** News articles from reputable Colombian financial news outlets like La República or Portafolio often cover these legislative developments. For official texts, the Colombian Congress website would be the primary source.
        *   Congreso de la República de Colombia: [https://www.senado.gov.co/](https://www.senado.gov.co/) or [https://www.camara.gov.co/](https://www.camara.gov.co/) (for tracking specific bills)

*   **Banco de la República - Stance on Legal Tender:**
    The central bank has consistently stated that cryptocurrencies are not considered legal tender in Colombia.
    *   **Excerpt (Summary of consistent public statements):** The Banco de la República has clarified that the Colombian peso is the only legal tender in the country and that cryptocurrencies do not have the backing of the central bank. However, this does not prohibit their trading or holding as assets.
    *   **Source:** Banco de la República: [https://www.banrep.gov.co/](https://www.banrep.gov.co/)

*   **General View from Legal and Consulting Firms:**
    Many legal analyses confirm that while specific, comprehensive crypto regulation is still developing, trading itself is not banned, and AML/CFT rules are increasingly applicable.
    *   **Excerpt (Representative of typical analysis by law firms):** "In Colombia, there is currently no specific legal framework that expressly prohibits or permits the use and trading of cryptocurrencies. However, financial regulators and control entities have issued several circulars and concepts warning about the risks associated with these assets... Recently, the Financial Intelligence Unit (UIAF) issued Resolution 314 of 2021, which requires Virtual Asset Service Providers (VASPs) to implement an AML/CFT risk management system and report suspicious transactions." (This is a conceptual quote representing common legal interpretations).
    *   **Source (Example of a reputable firm providing analysis - users should search for recent analyses from firms like Brigard Urrutia, Philippi Prietocarrizosa Ferrero DU & Uría, or international firms with Colombian practices):** These firms often publish insights on their websites. For instance, a search for "criptomonedas regulación Colombia [firm name]" would yield relevant articles.

**Conclusion:**

Individuals in Colombia are permitted to buy, sell, and hold cryptocurrencies. The regulatory environment is characterized by active efforts to bring the sector under a formal supervisory framework, especially concerning AML/CFT. While a comprehensive, specific law for crypto assets is still in the legislative process, existing financial regulations are being extended to cover VASPs. The SFC's sandbox initiative and the UIAF's reporting requirements for VASPs are clear indicators of this "Allowed-Regulated" status, where the activity is permitted but increasingly subject to specific rules and oversight.