Colombia Advances Regulatory Framework for Local Crypto Industry

The Colombian government has published draft rules for crypto companies wishing to operate in the country, several months after the launch of the South American nation’s “Sandbox” regulatory project. (Not to be confused with The Sandbox, one of the main blockchain-powered metaverse domains.)

The public will now be able to comment proposed settlementoffered by the Financial Superintendency of Colombia, the country’s financial regulator.

The rules offer a risk management system for money laundering and terrorist financing, as well as cybersecurity guidelines and ways to trace crypto transactions.

The approach claims that Colombia is working towards a future where citizens can buy crypto through their traditional bank accounts.

The Colombian “Sandbox” (or LaArenera) is a unique crypto experiment in Latin America that started last year after being approved by the government in 2020. It allows Colombian banks to partner with major crypto exchanges like Binance and Bitso to allow citizens to acquire Bitcoin, Ethereum or other digital assets.

Bancolombia—the largest bank in the country—struck an agreement last December with the New York-based Gemini exchange, allowing a limited number of customers to buy Bitcoin, Ethereum, Litecoin or Bitcoin Cash from their accounts under a one-year pilot program.

And in January, Binance, the world’s largest crypto exchange, spear its pilot project with the third largest Colombian bank, Davivienda, allowing 5,000 customers of its bank to acquire digital assets.

A total of nine Colombian banks are participating in the experiment, which was to last a year. Decrypt reported in November that the “Sandbox” had been slow so far. The program was supposed to end in March, but that was apparently delayed.

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