How Colombians Access Crypto Exchanges Despite Restrictions

Colombians don’t need to sneak around to use crypto. The idea that they’re bypassing strict bans or hidden restrictions is a myth. In reality, Colombia has one of the most active and legally supported cryptocurrency markets in Latin America. Over 5 million people use crypto here - not in secret, but openly, through regulated platforms, banks, and local exchanges.

There are no real restrictions - just rules

People assume that if crypto isn’t banned, it must be heavily restricted. But Colombia’s approach is the opposite. The government doesn’t block access. It sets rules so exchanges and users play fair. The Financial Superintendency of Colombia (SFC) doesn’t stop people from buying Bitcoin or Ethereum. It makes sure the platforms they use follow anti-money laundering rules. If you’re trading crypto, you need to prove who you are - just like when you open a bank account. That’s not a barrier. That’s protection.

Transactions over $150 must be reported to the Financial Intelligence Unit (UIAF). But that’s not a red flag. It’s standard practice in 120+ countries. You don’t need a VPN or offshore wallets to get around it. You just need to sign up with a licensed exchange. And there are plenty.

Local exchanges are thriving - not underground

You won’t find Colombians relying on shady offshore platforms. They’re using homegrown services like LuloX and Wenia, both fully registered with Colombian regulators. Wenia was even launched by Bancolombia, the country’s largest bank. That’s not a loophole. That’s institutional trust.

These platforms work just like any other app. You download them, verify your ID, link your bank account, and buy crypto in Colombian pesos. No tricks. No hidden steps. Wenia even created COPW, a peso-backed stablecoin that lets users send money across borders without high fees or delays. It’s used by small businesses, freelancers, and remittance senders every day.

Crypto mining is legal - and growing

Some countries shut down mining. Colombia invites it. In 2023, the government released clear rules for crypto mining operations: register your equipment, meet environmental standards, pay taxes, and report energy use. That’s it. No permits denied. No fines for existing rigs.

Companies in Bogotá, Medellín, and even rural areas with cheap electricity are setting up mining farms. One startup in the Andes region uses hydroelectric power to mine Bitcoin and sells the coins directly to local exchanges. Their revenue? Over $2 million in 2024. No one’s hiding it. They’re paying taxes. They’re hiring locals. They’re part of the economy.

Taxes? Yes. But they’re clear

Crypto isn’t tax-free. But it’s not punished either. Gains from trading are taxed under existing income tax laws. If you’re a casual user who bought Bitcoin and sold it later for profit, you report it like any other capital gain. If you’re running a business that trades crypto regularly, you pay corporate tax. The tax authority (DIAN) doesn’t chase small traders. They focus on large operators who try to hide transactions.

There’s no 30% crypto tax. No special crypto reporting forms. No surprise audits for people who trade $500 a year. The system is simple: if you make money, you declare it. Just like with stocks or real estate.

Why the myth of restrictions persists

You’ll still hear stories about Colombians using P2P apps or Telegram groups to trade crypto. That’s not because they’re forced to. It’s because they want to. P2P platforms like LocalBitcoins and Paxful let people trade directly with each other - no bank involved. That’s useful if you’re in a remote town without easy access to a bank branch. Or if you’re a freelancer paid in crypto and want to cash out fast.

But that’s choice, not necessity. Most Colombians who use crypto do so through regulated apps. The SFC reports that over 85% of crypto transactions in 2024 flowed through licensed platforms. The rest? That’s just a small segment using informal channels - not because they’re blocked, but because they prefer speed or privacy.

What’s changing in 2025

Bill 510, passed in its first legislative debate in early 2025, is the next big step. It doesn’t restrict crypto. It gives it a legal home. The bill defines Virtual Asset Service Providers (VASPs), requires them to register with the SFC, and sets clear rules for KYC, reporting, and security. This isn’t a crackdown. It’s a welcome mat.

Once passed, this law will make it easier for international exchanges to operate in Colombia. It will protect users from scams. It will give banks more confidence to partner with crypto firms. And it will keep Colombia ranked among the top 5 countries in Latin America for crypto adoption - a spot it’s held since 2022 according to Chainalysis.

Colombians aren’t circumventing the system. They’re building it.

There’s no need to use Tor, fake IDs, or offshore wallets. You don’t need to be a tech expert to buy crypto here. You just need a phone, an ID, and a bank account. Over 5 million people already have. And they’re not hiding. They’re investing. They’re paying taxes. They’re starting businesses.

The real story isn’t about restrictions. It’s about opportunity. Colombia didn’t shut down crypto. It opened the door - and millions walked right in.