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Some cryptocurrency exchanges and banks in Colombia have already started operating within the framework of the first regulatory trials. The sandbox will “replicate the good practices of the financial system in the field of crypto assets,” says Alejandro Beltrán, country manager of the exchange Buda.com.
In an interview conducted in the YouTube Blockchain Summit Latam Analysis program, hosted by Cristóbal Pereira, Beltrán explained the regulatory sandbox that was announced in Colombia in February and that aims to test associated operating mechanisms between banks and exchanges. The premise is to achieve a more effective regulation of cryptocurrencies.
In this sense, the representative of Buda.com in the country commented that the company is “very close” to start operating in the sandbox, in which it is associated with Banco de Bogotá. “We are fine-tuning the terms and conditions,” he said, while detailing that they will be included four cryptocurrencies for testing: bitcoin (BTC), ether (ETH), bitcoin cash (BTCC) and Litecoin (LITE).
“Participation in regulatory tests grants a temporary certification for a period of one year, but extendable to two years, to work under certain specific conditions. Financial entities, led by the Financial Superintendence of Colombia, want to understand crypto assets, how they are linked to traditional services and how consumer rights are defended in this area, “said Beltrán.
However, each of the other participating exchanges and banks has the power to decide on the implementation deadlines for these tests. For example, explains Beltrán, “since last week there has already been a platform (Bitpoint) operating hand in hand with a financial institution (Movii)”.
As CriptoNoticias reported in February, in Colombia there is a regulatory sandbox in which methodologies are being tested through partnerships between banks and exchanges so that a law on cryptocurrencies can be debated in the future. The authorized alliances between exchange houses and banks in the country were: Bancolombia with Gemini, Davivienda and Powwi with Binance, Banco de Bogotá with Bitso and Buda, Coltefinanciera with Obsidiam, Coink with Banexcoin, and Movii with Panda and Bitpoint.
Who enters the regulatory sandbox in Colombia
The sandbox pilot tests allow the entry of no more than 5,000 users and a maximum amount of operations of just over 7 million Colombian pesos (approximately USD 1,845) under electronic deposits and 50 million Colombian pesos (approximately USD 13,181) for ordinary deposits , says Beltrán.
Regarding the method for choosing the users who will participate in the tests, he assured that Those who want to have an account at Banco de Bogotá and at Buda.com will be included. In this way, it is sought “that everyone has the necessary information to manage risks.” Currently, Buda.com has “100,000 registered and 67,000 verified and operated users.”
Asked for more details on the upcoming trials, he made it clear that “companies or legal entities cannot yet join, but natural persons can.” Likewise, Beltrán announced that both the bank and the exchange are preparing a message protocol to answer user questions.
However, he clarifies, this “does not mean that all the operations of Buda.com are within the pilot test or the sandbox. There are users who are not willing to operate under sandbox conditions, such as operating only with partner bank accounts.
The Colombian cryptocurrency market
Ultimately, Alejandro Beltrán provided his vision on the current Colombian situation in the world of cryptocurrencies. In this regard, he assured that “the entire region has a lot of potential for the adoption of cryptocurrencies, mainly bitcoin” and that Colombia is “one of the 10 economies with the highest adoption in the world”, citing a study by Chainanalysis.
In this sense, the Buda.com country manager said that the adoption of cryptocurrencies could be interesting for remittance systems and e-commerce. However, he also clarified that “there is an animosity towards cryptocurrencies on the part of the banking system that continues to manifest itself, despite the openness.” This, they hope, will be corrected from the joint work that is done in the sandbox.