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Colombia’s Superintendencia de Sociedades bans bitcoin and other digital currencies

The Superintendence of Companies (Superintendencia de Sociedades), a technical agency, attached to the Ministry of Commerce, Industry and Tourism in Bogotá, Colombia, has announced that the usages of digital currencies like bitcoin are prohibited in Colombia.

According to the release, Francisco Reyes Villamizar, the superintendent of Societies, made the announcement that the only legal currency in Colombia is the peso, after warning that the entity has received dozens of complaints from users about firms that advertise virtual currencies. He warned about these alleged companies that promote virtual currencies offer by the development of ‘investment clubs’, which promise returns of up to 100% in a couple of months to those who surrender their resources and bring in more people (loosely translated).

"Investors should know that they are exposed to enormous risks by investing in alleged currencies that have not been accepted as legal in the country," Reyes Villamizar said. “These so-called advisers promise investors to manage their bets on investment platforms and generate higher returns than they would get if they bet their money directly (loosely translated).”

The official said that the Banco de la República, the official issuer of currency in Colombia, has reported already on several occasions that the alternative payment mechanisms to weight are not valid in the national territory.

The Superintendence of Companies also found that these individuals and companies usually operate under pseudonyms and organize forums and ‘private’ meetings on different technology platforms to leave no trace. Also, Reyes Villamizar emphasized that in Colombia there are no multilevel companies authorized to trade this type of assets.

Jorge Eduardo, a business consultant told PanAm Post, “To say that pesos are the only means of payment is to deny the fact that people pay for a part of a new car by delivering a used car or by exchanging an apartment or another local for a used Villa. Bitcoins can be valued in pesos just like cars or houses. Everyone in each business checks that proportion of what is delivered or received is in pesos, bitcoins or some other asset.”

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