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Bitcoin Banned in Colombia

Bitcoin Banned in Colombia

Bitcoin Banned in Colombia

​​Finding good news about the exciting world of Bitcoin and decentralized digital currency isn’t hard to find these days. Exchanges around the world are reporting trading records, the Bitcoin price has reached three-year highs, and even the mainstream media is feeling Bitcoin fever. Yet, not every nation in the world is enamored with “The Internet of Money,” as the South American nation of Colombia has decided to end 2016 by banning Bitcoin usage, domestically.

Bitcoin ‘Investment Clubs’ Blamed

Francisco Reyes Villamizar, the superintendent of Colombia’s Superintendencia de Sociedades, made the announcement before the New Year’s holiday that the only legal currency in Colombia is the peso, making Bitcoin’s digital currency illegal. The problem stems from the growing cottage industry of Bitcoin ‘Investment clubs.’ 

Reportedly dozens of citizens in the country have filed formal complaints of these firms who operate as ‘pyramid schemes.’ The operators offer fantastic returns in excess of 100% in a matter of a couple of months in exchange for investments and referrals to more investors.

"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).”

These individuals and companies usually operate under pseudonyms and organize forums and ‘private’ meetings on different technology platforms to leave no trace. Exactly how Bitcoin would be banned by the average mobile wallet user has not been determined, and the ban may only apply to such business-related uses like investment startups.

This marks the first official banning of Bitcoin on any national scale that we have discovered. As we reported last year, regulators within Russia were considering their own ban, with the potential for up to seven years of prison time for the use of Bitcoin, but have since relented. Bitcoin investment at sites like LocalBitCoins.com has grown to new heights over the last six months.

Many nations have seen the nation’s central bank issue an official warning against the use of “virtual currencies,” as ion the African nation of Kenya, for example. However, an outright government ban is not commonly seen, much less enforced. Nations are much more likely to create their own version of Bitcoin, as we have previously reported. The nation of Japan has gone so far as to legalize Bitcoin use officially, and put its value on par with the Japanese Yen.

Author : Evander Smart

Evander Smart worked for many years as a Wall Street banker, and has learned how the economy is self-destructing from the inside. His travels, experience and research have led him to Bitcoin as the best way forward for the common man. He looks to spread the word on how Bitcoin can help anyone break the shackles of economic slavery being created by global establishment forces. Evander gets you thinking about what money really is, and how it will work for you going forward. The world of finance is getting ready for incredible changes, and he is getting ready for what's coming next. Are you? Learn more about "The Future of Money" @ Bitcoin Video University

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