Disclaimer Time

We plan to use BLOCKCHAIN technology to innovate conventional investment methods, and create tools to democratize investment in compliance with regulation in Colombia, where this project is located, but not exclusive to their nationals.

We don't promise extraordinary gains, volatility or tokens that could be useful for pumps or money laundering. We don't use referral, piramidal or multilevel estructures. We are in it for the development of our country, capital is a means and a consequence.

Because land, buildings and businesses require work and are not created out of thin air like tokens, we don't give handouts AND we are not responsible if you get scammed in such schemes. Reporting any scam activity or security issue IS work and can be rewarded.

We currently don't conduct any formal business involving cryptocurrencies. When this changes we will notify our users and start complying with reporting requirements to the UIAF and related institutions according to the scope of the movements.

Decentralized Investment+Rent

You already know what ARCA means, this is the other part, our work on Decentralized Investment Access

We are developing the building blocks and compliance framework to allow Colombians (and the world) to invest and rent in local Real Estate and Business through blockchain based value and management tools.

Since regulation doesn’t provide a framework yet, we are starting with a conventional structure to experiment in bridging local law and regulations into a future DAO. Check details about our core operating fronts in the portfolio.

Not the usual

Challenges to Overcome

Our end game is offering the possibility to investors of all sizes to invest and rent from real estate + business opportunities, as easy as buying, staking and selling any other crypto asset.

In the

Local market

  • Blockchain RegulationNot adverse to crypto, but there's no specific regulation to integrate it in business models like ours.
  • Accounting & ManagementCurrent models and processes could hurt efficiency and decentralization.
  • Tech LiteracyMost population still figuring out 1st generation crypto paradigms.
  • Economy & PoliticsInflation and political uncertainties too early to start clearing.

For

Global Investors

  • Quirky Foreign InvestmentWe are awkwardly friendly to FI but have no framework for crypto FI.
  • Taxes & TreatiesHow to bridge crypto with the current benefits to foreign taxation.
  • Country Positioning (Marketing)Not a very well known country, until recently shadowed by conflict.
  • Benefits For Local ExitsHelping you get your Investor visa implies acting as 'registered agents'.

Colombia is already

A good investment destination

We just want to make it better, more accessible to starting investors, both local and foreign.

GDP 2021 [PIB]314B USDGood recovery after pandemic affected by imports, BOT, EE war, and global inflation.

Source: WB via Trading Economics

GDP YoY 22 Q2 12.6% ▲Beating expectations and the region's trends. Fueled by oil exports and IEDP (portfolio).

Source: Trading Economics

Foreign Investment 22 Q24773M USDLocally know as IED (direct). Keeps the trend set by last quarter's record of 5072M.

Source: BANREP

Explore more stats and trends in our markets of interest

The |state| of crypto

regulation in Colombia

Solving the specific challenges of this project unlocks a huge range of opportunities of investment in the vertical and in unrelated markets. This is the core of the whitepaper we are preparing, where explaining the how is a legal and procedural exercise, rather than a coding and algorithmic one. As of October 2022 there is no single, specific, crypto regulation, different institutions address their own concerns and set their own policies.

1

BANREP: Cryptos are not currencies

Banco de la Republica, our FED equivalent, started addressing crypto since 2014 stating that cryptocurrencies are not actual currencies, not being backed by a government etc. Pretty much the same view of most central banks. The central points of their press releases and statemens are:

  • 1
    Colombian peso (COP) is the only legal monetary and accounting unit in the country.​
  • 2
    Cryptoassets are not recognized as legal tender, nobody's obligated to receive them.​
  • 3
    Cryptoassets are not recognized as (foreign) currency.Hence, they can't be used in (forex) exchange operations, like registering foreign investment.​
  • 4
    Financial institutions and stock markets are not authorized to mint or sell cryptoassets.​
  • 5
    Established a workgroup to study the market and regulate as needed.
  • 6
    BANREP joined the R3 (Corda) initiative enabling the establishment of a sandbox environment.
2

SFC: Regulated entities can't crypto.

Superintendencia Financiera de Colombia is our FINRA/SEC equivalent, an oversight and vigilance entity. They are in charge of setting up the sandbox for evaluating blockchain based business in the context of a future specific regulation, works more or less like a waiver.

  • 1
    Supervised Entities (SEs) can't hold, invest, intermediate, or operate with crypto assets.Neither allowed to use their platforms for operations related with them.
  • 2
    "Electronic coins, crypto coins or virtual coins" are not securities.Not part of the local stock market, not a valid investment for SEs which can't advise or operate on them.
  • 3
    SEs can't offer custody, invest, intermediate, or operate with "Virtual Coin Systems"Same as the first one but geared toward some pyramidal schemes and other informal investments
  • 4
    Statements to the public with generic warnings and precautions, some quotes:
  • 4.1
    "their acceptance is very limited"
  • 4.2
    "They are not backed by tangible assets"
  • 4.3
    "Exchanges are not regulated by local law"They are now at least in the sandbox, exchanges informed the users.
  • 4.4
    "operational risks like virtual account stealing"
  • 4.5
    "they are not backed by any private or state warranty"What is a smart contract. And no warranty from the state is the original POC of crypto anyway.
  • 4.6
    "transactions are anonymous"
3

DIAN: Crypto pay taxes like any other capital gain

Dirección de Aduanas e Impuestos Nacionales is our IRS equivalent, like many others started to pay attention in 2017. Their positions are based on the 2014 FATF document and not much different from most taxation opinions regarding cryptocurrencies. But they only address this scenario and not all the other types of crypto assets. AML is though due to WoD and preventing the missuse of what we develop should be baked in the fundamentals.

  • 1
    Is not clear if they think a "bitcoin" is a phisical coin with a "virtual representation"That only works when is connected to the internet
  • 2
    Crypto mining might creates estate and produces rent, at the very least, is providing a service.
4

CTCP: We can't clasify this, checks too many boxes.

Translated Technical Council of Public Accounting dictates the standards by which companies should report their numbers. They are implementing the NIIF standard and base their points on that, which doesn't provide specific guidelines for crypto assets. These views apply mostly to handling crypto in business accounting.

  • 1
    Policies for one type of CA might not work for another.accountants should evaluate each asset
  • 2
    Cryptoassets meet the definition of assets.
  • 3
    Not FIAT or FIAT equivalent
  • 4
    Like gold bullion, it may be liquid but no contractual value so is not a financial instrument
  • 5
    A cryptocoin can't be classified as an investment property.
  • 6
    They are an intangible asset as long as there is an active market.
  • 7
    CA commerce can be treated like listed raw materials exchange.

Sources:

The info in this regulation summary is taken from the “Documento Técnico Cryptomonedas” which is published by BANREP and compiles a unified stance based on the multiple sources and opinions in the matter. The document also includes an overview and comparison with regulation in other countries, mostly in the region.  [PDF]

The 4 ways we are not just another crypto project.
And while we don’t want to make regulation and regulators to go away, it certainly set us apart from the usual cryptosomething. Enough that we actually want regulators to be close, we have nothing to hide and the fastest we are vetted the better. Bidding for state projects can’t be out of our scope, which is “big picture”.

We do other things

DLT is just one of the things we do, besides DIA, we'll explore internal use for automating what can be intensive acounting exercises, process management for those other things, etc.

Not the usual premise

Which revolves around a token, its logic, and how the market values that utility. We revolve around tangible assets, the logic is given by the law and market, and the value is implicit.

We love to educate

Contrary to shady crypto projects or schemes, we benefit on our users to be educated in the technology, long term it'll do more to grow our market and crypto penetration overall.

Conventional funding

Exercises for multiple funding methods were made and the best approach was an STO. While regulation gets there, and not being centered or funding our crypto ops, VC is the logical way.

Inviting angels and VCs to manifest their interest in becoming Internal Investors.

Before we are able to request funding for our RE projects, we need to fund our initial operations and staff. As you may have noticed, this is a project in which the legal and procedural should be the main focus at first, rather than a technical development. We can’t do the later if the former is not solid.

Internal investors are selected  based on their experience and affinity with our project’s environment and goals. Market cap and funding objectives are modest so tickets might be limited. That’s why we think in the founders’ potential for advising and execution as a multiplier in relation to the size of their investment. Please use our Whitelisting form to let us know your interest.

[estimation_form form_id="8" step="62"]