The leader of the banking regulator briefly mentioned the current state of the regulatory sandbox in Colombia. The pilot tests might get completed at the end of March 2022.
The leader of the Financial Superintendency of Colombia, Jorge Castaño, expects that, by the end of March 2022, the selected cryptocurrency exchanges could gain access to open accounts in Colombian banks. The statement appeared this Thursday, November 4, during the representative’s participation in the 55th Banking Convention, as reported by the local portal, Semana.
The date runs in parallel with the completion of the pilot testing process to set regulative measures on transactions with crypto assets that the financial authority began in March of this year. In the process, which got revealed under the name of the regulatory sandbox, eight Colombian banking institutions and eight cryptocurrency exchanges would now play a vital role in the program.
The participant entities in the project are Banco de Bogotá in association with Bitso and Buda; Bancolombia associated with Gemini; Coltefinanciera with Obsidian; Davivienda and Powwi working in parallel with Binance; Coink with Banexcoin; and finally Movii, in a mutual relationship with Panda and Bitpoint.
The Importance of the Crypto Assets Pilot Program
During a speech at the convention, organized by the Colombian Banking Association, Jorge Castaño highlighted the importance of the crypto assets pilot program. As the leader explained, the tests will allow Colombians to set investments in cryptocurrencies with fiat money from their bank accounts using crypto-asset exchange platforms and vice versa.
At the beginning of last May, an official of the Superfinancial, Laura Clavijo, explained in an online forum that the regulatory sandbox would seek greater inclusion in the financial system based on cryptocurrencies such as bitcoin.
Since the program appeared on the radar, the regulatory authority managed a controlled space where commercial banks could test services associated with cryptocurrency exchanges.
Colombia’s regulatory sandbox would allow a more inclusive financial system for the country’s citizens, and cryptocurrencies like bitcoin are key. The leader of the Innovation Group of the Financial Superintendence of Colombia (SFC) announced the program during a virtual forum held on Thursday, May 6.
Major Commercial Banks Would Test Services with Cryptocurrency Exchanges
At the Blockchain and cryptocurrencies event in Colombia, Clavijo presented a general sketch of the scope of the experimental environment that the SFC created with the idea of testing innovative business models. The government pilot plan allows more local commercial banks to test services with cryptocurrency exchanges, such as Binance and Gemini.
The official also added that at least 63% of financial operations took place in the digital environment in Colombia due to the pandemic outbreak.
That situation forced the government to understand that financial technology (Fintech) represents a challenge for regulation but, the government cannot see it the other way around because there could be a risk of slowing down the regulative measures.
By: Jenson Nuñez
