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Colombian Banks to Cooperate With Exchanges on Crypto Pilot

According to the Financial Superintendence, one of the most important financial regulators in Colombia, several of the nation’s top banks are set to work with big crypto exchanges on a crypto-asset transactions pilot.

The goal of this partnership between crypto exchanges and banks is to test the way banks can use crypto to carry out transactions and see if this approach can improve payment speed and efficiency. The pilot will spread over a year and will be carried out within a newly-built regulatory sandbox. 

Approved Alliances 

Fourteen partnerships were nominated for testing in the Financial Superintendence’s Sandbox, yet only nine of them were approved. According to Semana, the Bank of Bogotá will work with Bitso and Buda, Bancolombia will pair with Gemini’s Colombian branch, and the neobank Movii will cooperate with Bitpoint and Panda. 

Binance will also be part of this pilot project, as the cryptocurrency exchange’s Colombian operations are said to pair with Powwi, a fintech firm, and the Davivienda bank. Banexcoin and Coink are also among the approved alliances. 

The Evaluation and Follow-up Committee that selected the partnerships that would participate in the government pilot included Financial Superintendence members, presidential office members, and other financial regulators. 

As stated by the Financial Superintendence, this project will not have any impact on the legal status of crypto in Colombia and will not allow banks to pursue crypto-related business without being under the supervision of the regulatory sandbox. 

The regulator also warned the exchanges approved to pair with the above-mentioned banks that they “must perform due diligence when making decisions to buy and sell crypto assets” in the regulatory sandbox and that the high-standards applied in conventional banks should also be used in crypto-related transactions. 

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