Pyramid schemes in Colombia: its treatment in Law 1700 of 2013 and in Decree 024 of 2016

Las estafas piramidales en Colombia: su tratamiento en la Ley 1700 de 2013 y en el Decreto 024 de 2016

The purpose of this article is to show, for example to legislators across the world, the essential notes on the juridical legislative treatment that the Republic of Colombia has on  Multi-level Direct Selling or network marketing, as it is most commonly referred to in the “Colombian way”. This provides a barrier to avoid the legal gap that in other countries benefit, boost and, oftenly allow high level economic delinquents to establish the central bases of pyramid schemes in places where legislation on the matter does not exist. This leads to the ruin of thousands of small and medium scale savers that put their economic hopes in disguised pyramid schemes, under the guise of a false legality.

Finally, the phenomenon of pyramid scheme frauds that are commited using cryptocurrency as bitcoin will be analyzed, covering the juridical and tax regime of cryptocurrency and, in the end, describing infamous cases of pyramid scams that have been commited utilizing this type of currency as a means of payment or investment.