Colombia To Support Crypto Sector With Tax Cuts

cease and desist order; UBPC is found to be operating fraudulently

In what is another positive highlight in the adoption of cryptocurrencies, local media reports Colombia to support crypto sector. The country’s President Ivan Duque made public the intention at the International Congress on Information and Communication Technologies. The government has promised to extend tax breaks to the industry. The administration will not impose income tax on any of the cryptocurrency firms based in Colombia for 5 years.

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President announced Colombia to support crypto sector at a conference

The President regards blockchain technology as his “obsession” and will “position Colombia as the future tech capital.” Addressing the conference in Cartagena, the President detailed that the plan will include further developments in complex technology. The country will focus on Artificial Intelligence, robotics and blockchain technology.

With regulatory advancement, the president believes blockchain can fight corruption, El Tiempo reports. The local news outlet quotes the President as saying the technology has huge potential in averting corrupt deals. To that end, the government will utilize the unique properties of blockchain to “track public funds and detect abnormalities.”

However, President Duque will face a lot of challenges in the quest for technological innovations. There are a lot of structural and systemic limitations to the extent to which technology can operate in Colombia. Most of the country is outside the national power grid. Internet connection is also a menace in the country that has faced insurgencies and violence from drug cartels.

Expanding digital connectivity

In acknowledgement, the President noted the need for improvement. According to reports, the President will appoint a digital czar who will report directly to him. The person will be responsible for the country’s digital migration as well as providing more digital connectivity. “…we want a modern Colombia,” the President said while making clear of efforts for Colombia to support the crypto sector.

The President is also aware that the success of the plans requires a synergy between the public and private sector, in his opinion. The President further notes that, “A marriage between the public sector and private investment will be required.”

In taking the steps, Colombia will join Malta, Australia, Switzerland and the Lichtenstein in expanding crypto adoption.

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