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Some cryptocurrency exchanges and banks in Colombia have already started operating within the framework of the first regulatory tests. The sandbox it will allow “to replicate the best practices of the financial system in the field of cryptoassets,” says Alejandro Beltrán, country manager the exchange Buda.com.
In an interview on the YouTube program Blockchain Summit Latam Analisis, hosted by Cristóbal Pereira, Beltrán explained the regulatory sandbox that was announced in Colombia in February and which aims to test mechanisms of associated operation between banks and exchanges. The premise is to achieve a more effective regulation of cryptocurrencies.
In this regard, the representative of Buda.com in el país he commented that the company is “very close” to start operating in the sandbox, in which it is associated with the Bank of 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 the regulatory tests grants a temporary certification for a period of one year, but extendable to two years, to work under certain specified conditions. Financial institutions, 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,” Beltran said.
However, each of the other participating exchanges and banks has the power to decide on the timing of implementation of these trials. For example, explains Beltrán, ” since last week there is already a platform (Bitpoint) operating hand in hand with a financial institution (Movii)”.
As Crypto News reported in February, in Colombia there is a sandbox regulatory in which methodologies are being tested through partnerships between banks and exchanges so that a cryptocurrency law 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 sandbox regulatory in Colombia
The pilot tests of the sandbox they allow the entry of no more than 5,000 users and a maximum amount of operations of just over 7 million Colombian pesos (USD 1,845 approximately) under electronic deposits and 50 million Colombian pesos (USD 13,181 approximately) for ordinary deposits, says Beltrán.
Regarding the method for choosing the users who will participate in the tests, he assured that will be included those who want to have an account in Banco de Bogotá and in Buda.com. In this way, it seeks “that everyone has the necessary information to manage risks”. Currently, Buda.com it has “100,000 registered users and 67,000 verified and have operated”.
Asked for more details on the upcoming trials, he made it clear that ” companies and legal persons cannot yet join, but natural persons can.” Also, Beltrán said that both the bank and the exchange are preparing a message protocol to answer users ‘ questions.
However, he clarifies ,this ” does not mean that all Buda.com go inside the pilot or sandbox. There are users who are not willing to trade under the conditions of sandbox, such as operating only with accounts of the partner bank”.
The Colombian cryptocurrency market
Ultimately, Alejandro Beltrán provided his insight into Colombian current affairs in the world of cryptocurrencies. In this regard, he said 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 regard, the country manager from Buda.com he argued 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 opening.” This, they hope, will be corrected from the joint work that is carried out in the sandbox.