Some cryptocurrency exchanges and banks have started partnering to achieve more effective regulation of cryptocurrencies. The pilot tests limit operations to around USD 1,845 for electronic deposits and around USD 13,181 for traditional deposits.
The first regulatory tests in Colombia have led some cryptocurrency exchanges and banks to operate differently. According to Alejandro Beltrán, country manager of the Buda.com exchange, the regulatory sandbox will allow replicating the good practices of the financial system in the field of crypto assets.
In recent days, Beltrán explained the regulatory sandbox that Colombia announced in February. He said it seeks to test associated trading mechanisms between banks and exchanges. The goal is to achieve more effective regulation of cryptocurrencies.
Beltrán stated that participation in regulatory tests grants a temporary certification for one year, extendable to two years, to work under certain conditions. The Financial Superintendency of Colombia leads financial institutions that want to understand crypto assets. These entities do not know how to link traditional services and defend consumer rights in this area.
However, exchanges and banks have the power to decide on the implementation deadlines for these tests. For example, Beltrán explains that a platform (Bitpoint) began to operate alongside a financial institution (Movii).
Colombia has a regulatory sandbox in which banks and exchanges are testing methodologies through partnerships. The authorized alliances were: Bancolombia with Gemini, Davivienda and Powwi with Binance, Banco de Bogotá with Bitso and Buda, Coink with Banexcoin, and Movii with Panda and Bitpoint.
Who Can Enter the Regulatory Sandbox in Colombia
Beltrán commented that the pilot tests allow no more than 5,000 users to enter the regulatory sandbox. Furthermore, they limit transactions to around COP 7 million (approximately USD 1,845) for electronic deposits and COP 50 million (approximately USD 13,181) for traditional deposits.
For example, users participating in the tests will include those wanting to have accounts with Bancolombia and Gemini. In this way, everyone can have the necessary information to manage risks.
Regarding the upcoming tests, Beltrán clarified that neither companies nor legal entities can join yet, but natural persons can. He said that both the bank and the exchange must prepare a message protocol to answer user questions.
However, he clarifies that not all the transactions of a given exchange go into the pilot test or the sandbox. Some users are unwilling to trade under sandbox conditions, such as operating with only accounts of the partner bank.
The Colombian Cryptocurrency Market Today
Alejandro Beltrán gave his opinion on the current situation of Colombia in the world of crypto assets. He stated that the region has a lot of potential for the adoption of cryptocurrencies, particularly Bitcoin. According to a study by Chainalysis, Colombia is one of the ten economies with the highest adoption worldwide.
The Buda.com country manager said that remittance systems and e-commerce could be interested in the adoption of cryptocurrencies. However, he clarified that the banking system still shows hostility despite openness. They hope that this situation will change through the joint work that banks and exchanges do in the sandbox.
By Alexander Salazar