Colombia Advances In Regulatory Framework For Crypto Industry

Colombia advances in the regulatory framework created for the crypto industry as the South American nation is inching to the future where the banks and exchanges are working together so let’s read more today in our latest cryptocurrency news.

Colombia’s government released draft rules for crypto companies that operate in the country a few months after the launch of the nation’s regulatory Sandbox project which should not be confused with The Sandbox as one of the leading metaverse platforms. The public will not be able to comment on the regulations that were put forward by the Financial Superintendence of Colombia with the country’s financial regulator.

The rules propose a risk management system for money laundering and terrorism financing but also cybersecurity guidelines and other ways to trace crypto transactions. The approach affirmed that Colombia advances in a regulatory framework where the citizens are able to buy crypto via traditional banking accounts. Colombia’s Sandbox will be a unique Latin American experiment that already kicked off last year after being approved by the governemnt in 2020 and allows Colombian banks to partner with most exchanges like Bitso and Binance to allow citizens to acquire Ethereum or bitcoin.

Bancolombia as the country’s biggest bank made a deal with the NY-based exchange Gemini and allowed a limited number of clients to buy ETH, LTC, and BTC from their accounts in their one-year pilot program. Binance as the world’s biggest exchange kicked off the pilot with Colombia’s third biggest bank Davivdenad which allowed 5000 of bank customers to snap up digital assets.

About nine banks in Colombia are taking part in the experiment which was to last for a year. The Sandbox has also been quite slow until then but the program was supposed to conclude in March and got delayed.

As earlier reported, The residents of Colombia will be able to purchase crypto such as BTC directly from their bank accounts. The decision came as a part of Colombia’s new regulatory sandbox which is the start of the journey where other banking institutions start to offer crypto services to their clients via arrangements with the leading crypto firms. Colombia’s biggest bank will allow its citizens from December 14, to buy crypto via their bank accounts thanks to a deal with the Winklevoss-owned crypto exchange Gemini.