Colombia Improves Regulatory Framework For Local Crypto Industry

The Colombian government has released draft rules for crypto companies that intend to operate in the country. The public will now be able to comment on the proposed rules put forward by the Colombian Financial Authority. The rules offer a system for managing money laundering and terrorist financing risks, as well as cybersecurity recommendations and ways to track crypto transactions.

Last year, a unique Latin American crypto-experiment “Sandbox” of Colombia started. It is approved by the government in 2020. The project allows Colombian banks to partner with major crypto exchanges such as Binance and Bitso to enable citizens to purchase bitcoin, ethereum or other digital assets.

Bancolombia, the country's largest bank, struck a deal last December with New York-based exchange Gemini, allowing a limited number of customers to buy cryptocurrencies from their accounts as part of a year-long pilot program. In January, Binance launched a pilot project with Colombia's third largest bank, Davivienda, allowing 5,000 of its bank's customers to buy digital assets.

Image: The Crypto Times