This research aims to analyze the criminology of kolbari and distinguish it from smuggling, identify the factors of its prevalence, and evaluate existing policies. The research method is descriptive-analytical, using the theories of relative deprivation and illegal opportunities. The findings show that kolbari is a livelihood activity rooted in economic and social deprivations such as poverty, unemployment, and isolation of border areas, while smuggling is an organized crime with profit-seeking motives and destructive effects on the national economy. The Law on Combating Smuggling of Goods and Currency, passed, classifies this activity as smuggling due to the lack of an independent definition of kolbari and imposes disproportionate penalties on kolbaris. The Law on Organizing and Monitoring Border Trade, passed, was a step towards differentiation by allowing kolbari for five years, but time and geographical restrictions have reduced its effectiveness. The research’s recommendations include establishing free trade zones, amending laws to define Kolbari independently, providing insurance and legal protections, strengthening border surveillance, investing in education and skills training, raising media awareness, and coordinating the three branches of government. These strategies, by combining social and situational prevention, will help regulate Kolbari, reduce smuggling, and sustainably develop border areas. This research emphasizes the need for distinct policies to support border dwellers and curb smuggling.