The money laundering authorities in Columbia, which is called the UIAF, has decided to delay the date from which individuals and exchanges in the country were expected to report their crypto transactions. Instead, they have decided to introduce a consulting period during which time individuals and companies would be permitted to share their thoughts about the proposed regulation. This would help them get suggestions and make any modifications if required, before it is implemented on June 1st. The UIAF in Columbia is responsible for detecting and controlling terrorism-financing and money laundering activities in the country.
The crypto exchanges and individuals would now have to provide reports of crypto transactions from June 1st instead of April 1st, as originally planned. The document did not specify the exact reasons of the delay, but announcement of the postponement said that they had decided to extend the reporting date because they wanted to ensure that complete reports are submitted to the UIAF and all information requirements of the entity are met. According to the new resolution, those organizations that have already sent their reports can continue to do it voluntarily. However, it added that there would not be any penalties applicable on the organizations if they do not submit their reports before June 1st.
This would provide companies and individuals more time to adjust to the new rules that had been established with resolution 314 back in December 2021. Meanwhile, the organization will be able to get commentary about the issue from different groups. Resolution 314 had been introduced by the UIAF because it had to oversee crypto transactions and so, it was established that all transactions would have to be reported to the organization if they would be above the value of $150. As for group of transactions, any above the value of $450 would have to be reported.
The Colombian organization said that the intervention of the UIAF had become necessary because of the situation created by these virtual assets. It said that while crypto operations in Colombia were not illegal, but there was a risk of illicit activities because of the anonymity associated with these assets. Plus, there was also no support from the central bank and the fact that crypto assets are not recognized as an instrument also gave people a lot of room for conducting illegal activities. Therefore, intervention had been required in order to prevent this from happening.
Nonetheless, there has been a lot of criticism directed towards the resolution. In fact, a number of personalities in Colombia related to crypto have spoken against the massive volume of data that has to be shared with the UIAF. Alejandro Beltran is one of the critics, the country manager for Buda.com. He said that reporting all transactions valued at $150 and above would mean huge amounts of data because there are a lot of transactions involved. He said that even exchanges cannot handle that much data and having to share it with the watchdog would be a big problem and hassle.