Colombia is making progress on regulation. The Superintendencia Financiera de Colombia (SFC) has authorised nine alliances between local traditional banks and crypto exchanges to participate in the first The Sandbox tests. Indeed, the pilot plan to regulate the metaverse phenomenon will begin in March and could last until 2023.

The Superintendencia Financiera de Colombia (SFC) : Alliances between banks and crypto exchanges (Sandbox)

Since 2020, the SFC has focused on opening a space to explore the traceability and risk management of cryptocurrencies such as bitcoin (BTC). The organisation's roadmap has five stages. The application and selection phases have already been completed. The third, which will start in March, is structuring. This will be followed by the study and feedback phases, which should last for a year.

Out of 14 applications, only nine passed the selection phase of the evaluation and monitoring committee. The authority did not provide any details on the crypto exchanges that failed the tests.

The nine alliances between traditional banks and cryptocurrency exchanges were established as follows:

  • Bancolombia with Gemini (alliance that began on 14 December 2021)
  • Davivienda and Powwi with Binance (alliance that started mid January 2022)
  • Coltefinanciera with Obsidiam
  • Coink with Banexcoin
  • Movii with Panda and Bitpoint
  • Banco de Bogotá with Bitso and Buda

Two of the most important exchanges in the crypto ecosystem have requested valuations . Therefore, in the event that Binance and Gemini pass the assessments, their cryptocurrency operations will be formalised on the local Colombian market. From then on, the Colombian authorities will be able to effectively approve their alliances.

The Financial Action Task Force (FATF) governs these tests. This means that to minimise the risk of money laundering and terrorist financing, high standards apply.

"The elements that each of the nine selected alliances must meet to start their deposit and withdrawal testing operations on behalf of cryptocurrency exchange platforms are defined and agreed in the SFC Arena for a period not exceeding one year."


THE EXAMPLE OF BITSO, THE NEW CONQUISTADOR OF THE COLOMBIAN SANDBOX

Bitso, a Mexican exchange with more than four million customers, has chosen Colombia for its expansion. A candidate in the bank-to-exchange experiment established by The Sandbox, Bitso's crypto services will be available to select customers of Banco de Bogota.

These 5,000 customers will have access to certain benefits. Bitso will not charge the normal fees for buying cryptocurrencies. Also, they will be able to buy bitcoin (BTC), ether (ETH), bitcoin cash (BCH) and litecoin (LTC) in Colombian pesos.

Bitso has appointed Emilio Pardo as the company's new managing director for Colombia. His role is to develop the company's strategy in the country to accelerate the adoption of cryptocurrencies and financial inclusion.

"We are witnessing one of the most important moments in the adoption of crypto-currencies in the country," said Pardo. Recall that until now, he held the position of business development manager for the Andean region at Mastercard. So the man knows his subject very well and knows what he is talking about.

Bitcoin and cryptocurrencies have a bright future in Latin America. Colombia is one of the forerunners of this financial revolution. Indeed, if cryptos are a good way to fight inflation, the governments of South America have understood this and intend to seize it. From this appropriation was born the Sandbox, at the service of Colombian regulation.

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