Colombia mandates reporting of crypto data, Latin America's $44.2 billion market faces a compliance test

New Regulations Are Coming: Platforms and Users Must Adapt

The Colombian National Tax and Customs Directorate (DIAN) officially issued Resolution No. 000240, requiring all crypto platforms, intermediaries, and related service providers offering services to residents or taxpayers of the country to obligatorily collect and submit user and transaction data. This is not a recommendation but a mandatory regulation—regardless of whether the platform is located inside or outside Colombia, as long as it involves tax residents of the country, it must comply. This move marks the beginning of a systematic and comprehensive phase of crypto regulation in Colombia and represents another key step in compliance development in Latin America.

Core Content of the New Regulations and Implementation Timeline

What do platforms need to report?

According to the resolution, transaction platforms are required to report the following core data:

• Account ownership information (user identity)
• Transaction amounts and frequency
• End-of-period market value and net asset balance
• Transfers or payments exceeding $50,000 USD will automatically trigger reporting

Regulated entities include all platforms and service providers handling cryptocurrencies such as Bitcoin, Ethereum, stablecoins (USDT, USDC, etc.).

What is the timeline?

How serious are the consequences of violations?

Institutions that fail to report or submit inaccurate information may face fines up to 1% of the unreported transaction volume. While this penalty rate may seem modest, for platforms with large transaction volumes, the amount could be substantial.

Why Now? The International Context Behind It

OECD Framework Push

DIAN states that this new regulation aligns with the Crypto Asset Reporting Framework (CARF) proposed by the Organisation for Economic Co-operation and Development (OECD). CARF is an important international framework aimed at promoting transparency in crypto assets, primarily to prevent tax evasion or concealment of wealth through cryptocurrencies. Colombia’s initiative is effectively a proactive alignment with international standards amid the global wave of crypto compliance.

Loopholes in Personal Reporting

Previously, Colombian individual users were required to disclose their crypto holdings and related earnings in their annual income tax returns. However, the tax authorities lacked third-party cross-verification channels to verify the authenticity of these declarations. With the new regulation, DIAN will be able to directly verify individual declarations through platform data, greatly enhancing regulatory effectiveness. This shift is akin to moving from “self-regulation” to “supervised regulation.”

Market Impact: How Significant Is It?

Colombia’s Important Role in Latin America

According to Chainalysis data, Colombia’s crypto transaction volume reached $44.2 billion between 2024 and 2025, ranking among the top in Latin America. This is not a small market but a genuine regional crypto hub.

Practical Impact on Platforms

• Increased Compliance Costs: Platforms will need to establish more comprehensive data collection, storage, and reporting systems, entailing additional technical investments and manpower costs.
• Challenges to User Privacy: While data reporting aims to prevent tax evasion, the balance of user privacy protection will inevitably tilt toward regulatory oversight.
• Greater Pressure on Small and Medium Platforms: Large exchanges already have robust compliance frameworks, but smaller and medium-sized platforms may face greater adaptation challenges.

Impact on Users

Users should be aware that their transaction data will be more systematically integrated into the national tax system. This means:

• Crypto earnings will be harder to conceal
• Individuals need to plan their tax strategies more carefully
• Cross-border transaction transparency will improve

The Deeper Significance of This Regulatory Upgrade

This is not merely a tax policy but a pivotal turning point for the crypto ecosystem in Latin America. In a sense, Colombia is making a choice: not simply banning or ignoring crypto assets but actively integrating them into the formal tax and financial systems.

Potential benefits include:

• Enhancing the legitimacy and institutional recognition of crypto assets
• Generating additional fiscal revenue through taxation
• Preventing illegal fund transfers via cryptocurrencies
• Aligning with international standards and boosting the global competitiveness of financial regulation

However, risks also exist:

• Excessive regulation could stifle innovation and market vitality
• Greater attention is needed for user privacy protection
• Implementation will face technical and institutional challenges

Geopolitical Considerations

It is noteworthy that this resolution coincides with shifts in Colombia’s geopolitical stance. Recent reports indicate that Colombian President Petro and U.S. President Trump have moved from confrontation to rapprochement, reflecting subtle changes in regional political dynamics. Against this backdrop, Colombia’s move to establish a more regulated crypto framework may also serve as an effort to demonstrate its financial regulatory maturity and reliability to the international community, especially the United States.

Summary

Colombia’s new regulation marks another critical step in Latin America’s crypto compliance journey and exemplifies global trends in crypto asset regulation. The key points are:

• Rules Are Set: From 2026 onward, platforms must mandatorily report user data, with the first comprehensive report due by May 2027.
• Costs and Risks Coexist: Platforms face rising compliance costs and privacy challenges, but this is an inevitable path toward institutionalization of crypto assets.
• Latin America as a Model: A market size of $44.2 billion means this regulation’s influence will extend beyond Colombia, potentially shaping the entire Latin American crypto ecosystem.
• Future Focus: The main concern is how effectively the implementation details will be executed and whether other Latin American countries will follow suit with similar policies.

For platforms and users operating in the region, now is the time to prepare rather than wait until the 2027 deadline.