Colombian Watchdog Says Companies Can Convert Capital to Bitcoin

Bitcoin Investing Regulation

Author

Tim Alper

Author

Tim Alper

About Author

Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

Author Profile

Share

Copied

Last updated:

June 26, 2023 06:54 EDT

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships.

Big American companies like MicroStrategy have made the headlines this year with their bitcoin (BTC)-buying policies, but companies in Colombia may be set to follow suit – after a corporate watchdog in the nation green-lighted the practice of holding capital reserves in crypto.

In an official notice, the Superintendency of Corporations (Superintendencia de Sociedades), the nation’s corporations regulator explained that following a consultation, firms in Colombia are now legally permitted to use their capital to buy cryptoassets such as bitcoin (the only token explicitly named in the document) – so long as they abide by regulations outlined in the existing commercial code.

The watchdog added that providing the tokens companies bought could qualify as “intangible assets,” and “meet criteria that makes them recognizable on inventories as intangible,” firms were now free to take the crypto plunge.

The ruling is a major turnaround for the watchdog, which in early 2018 was still warning companies of the dangers of crypto investment, opining that tokens were too “volatile” to qualify as assets.

However, the new document contains a number of warnings about crypto, showing that the Superintendency has not yet altogether abandoned its previous position, writing that crypto “is not money or legal tender,” and cannot be used “as a form of payment.”

The watchdog also warned that no central bank or international monetary organization had recognized crypto as a form of money, and that tokens were in no way to be considered as a substitute for cash.

Meanwhile, as reported, the Colombian government has opened applications for companies wishing to trial crypto transactions in a new regulatory sandbox.
___

Learn more:
Corporate Treasuries Caught Between an Inflation Rock and Bitcoin
Miami Mayor Open to Bitcoin Investment, Crypto Bill Pay Plans
Crypto in 2021: Bitcoin To Ride The Same Wave Of Macroeconomic Problems
Bitcoin Wheel Cannot Be Stopped
Bitcoin, Ethereum, XRP, Bitcoin Cash, Litecoin, Chainlink Price Predictions for 2021
Colombia’s Financial Sector May Be Allowed to Pilot Crypto Transactions