How Colombians Access Crypto Exchanges Despite Restrictions

Many people assume that if a country has restrictions on cryptocurrency, its citizens must use shady workarounds to get access. That’s not true in Colombia. In fact, Colombians don’t need to bypass restrictions because there aren’t any - not the kind you’d think, anyway.

Colombia has over 5 million people actively using crypto. In 2024 alone, $6.7 billion in cryptocurrency was traded within the country. That’s not a niche hobby. That’s a full-blown financial movement. And it’s happening openly, legally, and with institutional backing.

There’s no ban - just rules

The idea that Colombians struggle to access crypto exchanges comes from outdated stories. There’s no law saying you can’t buy Bitcoin, Ethereum, or any other coin. You can walk into a local exchange, link your bank account, and start trading - no VPNs, no peer-to-peer dodging, no underground apps.

What exists isn’t a wall. It’s a fence. The government doesn’t stop you. It just wants to know who you are and where your money comes from. That’s it.

The Financial Superintendency of Colombia (SFC) requires all crypto platforms operating in the country to follow strict KYC (Know Your Customer) rules. If you’re buying crypto, you’ll need to show your ID, proof of address, and sometimes even proof of income. But that’s the same process you go through to open a bank account or buy a car. It’s not a barrier - it’s standard procedure.

Local exchanges are thriving

Colombians aren’t just using Binance or Coinbase. They’re using local platforms built for them.

LuloX is one of the biggest homegrown crypto exchanges. It supports Colombian pesos (COP), has a simple mobile app, and integrates directly with local banks. You can deposit COP via PSE (Colombia’s real-time payment system) and buy Bitcoin in under five minutes.

Then there’s Wenia, launched by Bancolombia - Colombia’s largest bank. Yes, the same bank that handles your salary and mortgage now runs a crypto exchange. Wenia offers a stablecoin called COPW, pegged 1:1 to the Colombian peso. It’s not a workaround. It’s a product designed by one of the country’s most trusted financial institutions.

These aren’t fringe players. They’re regulated, audited, and supervised by the SFC. And they’re growing fast.

Crypto mining? It’s legal - and booming

One of the biggest myths is that mining crypto is banned or hidden. It’s not. Colombia has become one of the top mining spots in Latin America.

Why? Low electricity costs, stable internet, and clear rules. In 2023, the government released official guidelines for mining operations: register your equipment, report energy use, pay taxes like any other business. That’s it.

A startup in Bogotá now runs a 2-megawatt mining farm powered by renewable energy. They hired 30 local technicians. They pay taxes. They report everything. And they’re not hiding.

Other mining hubs have popped up in Medellín, Cali, and even smaller towns. The government doesn’t shut them down. It encourages them.

How taxes work - no surprises

Some people think crypto is tax-free. It’s not. But that doesn’t mean it’s restricted - it means it’s treated like any other financial asset.

If you trade crypto and make a profit, you pay income tax. If you run a crypto business, you pay corporate tax. The rules are simple:

• Capital gains from personal trading are taxed under personal income tax brackets (10%-39%).
• Businesses must report crypto income as part of their annual tax return.
• There’s no special crypto tax - just existing tax laws applied to digital assets.

The UIAF (Financial Intelligence Unit) monitors transactions over $150. If someone moves $10,000 in crypto without reporting, they get flagged. But that’s not a restriction - it’s anti-money laundering. The same rules apply to cash transfers, wire transfers, and real estate sales.

Why people think there are restrictions

So where did the idea come from that Colombians need to bypass rules?

It’s partly confusion. In 2021, the SFC told traditional banks they couldn’t hold crypto or facilitate crypto transactions. That meant some banks blocked deposits to crypto exchanges. But that rule only applied to banks - not to you.

It didn’t stop you from buying crypto. It just meant you had to use a crypto exchange directly, not go through your bank. And that’s exactly what people did. They switched to platforms like LuloX or Wenia. They didn’t hide. They adapted.

Also, some international platforms (like Binance) got blocked in Colombia because they refused to comply with local regulations. But that didn’t stop Colombians - it just pushed them toward local, compliant services.

The future is regulated - not restricted

Colombia isn’t waiting for global rules. It’s making its own.

Bill 510 of 2025, introduced by Senator Gustavo Moreno and Representative Julián López, is now moving through Congress. This bill will formally recognize Virtual Asset Service Providers (VASPs) as legal entities. It will set licensing requirements, reporting standards, and consumer protections.

This isn’t about shutting crypto down. It’s about bringing it into the light.

By 2026, every crypto platform in Colombia will need to be licensed. That means more security, fewer scams, and more trust. And it means Colombians will have even better access - not less.

Colombia’s crypto scene in numbers

Here’s what’s real:

• 5 million+ active crypto users
• $6.7 billion in crypto traded in 2024
• 36th globally in crypto adoption (Chainalysis 2025)
• 5th in Latin America
• Over 20 licensed local crypto platforms
• 3 major banks offering crypto services (Bancolombia, Davivienda, BBVA)

These aren’t underground numbers. They’re public data. Collected by regulators. Reported to the IMF. Verified by international analysts.

You don’t need to bypass anything

Colombians don’t need to use a VPN to access crypto. They don’t need to trade in cash. They don’t need to hide their transactions.

They just need to use a licensed exchange, show their ID, pay their taxes, and follow the rules - the same rules that apply to stocks, real estate, or foreign currency.

The real story isn’t about restrictions. It’s about evolution. Colombia didn’t shut crypto out. It invited it in. And now, millions of people are using it - legally, safely, and without apology.