Superfinanciera gave the green light to crypto assets in Colombia

Colombia is preparing to give the green light to the regulation of the operation of the financial sector with crypto assets.

This was confirmed to Valora Analitik by the financial superintendent, Jorge Castaño, who explained that, For this, they already have a normative project that will allow them to advance on this front.

(See also: Do cryptocurrencies sound like Chinese?: know how they work and their history)

It will be an external circular applicable to the sector, the draft of which will be made public “in the next few days”. Read More Cryptocurrency News.

This initiative will be presented as a consequence of the project of operations of cash in (deposit) and cash out (withdrawal) on crypto asset platformswhich was made in the so-called arena of the SuperFinanciera.

In practice, Castaño said, the rule will define, among others, the operational, customer knowledge and security standards that will be applied to said transactions.

Jorge Castaño, Financial Superintendent of Colombia, said that the draft regulation will be published in the next few days. Photo: Valora Analitik

That’s the way it is, financial entities in Colombia will be able to develop operations with virtual asset service providersthat is, the so-called Cryptocurrency Exchange.

Recommended: Cryptocurrencies: how is the regulation in Argentina, Brazil, Chile, Colombia, Ecuador and Peru?

sandbox keys

The regulations of the SuperFinanciera will be added to the work done by other authorities in Colombia for these operations, such as the Dian or the Financial Information and Analysis Unit (UIAF).

Also, It will be key to take an additional step in the country’s regulatory framework on cryptoactive issues..

The decision comes at a time when operations of this type are acquiring more and more volume in Colombia.

A nivel local, Buda.com estimates that around $100 billion is traded a month in digital assets and the arena of the SuperFinancial confirmed the good environment in the country to advance on this front.

Read More: Colombia: regulation of cryptocurrency platforms approved in first debate

Crypto assets could be acquired through entities in Colombia, who would operate exclusively in cash in and cash out

Seven Colombian financial companies operate in this space, in alliance with the Exchange. These are:

• Movii con Bitpoint
• Coltefinancial siege
• Bancolombia con Gemini Digital Assets
• Coink con Banexcoin
• Bank of Bogota con Buda.com
• Dahousing con Binance

The project in the sandbox allowed eva

Evaluate the effectiveness of technological developments when it comes to verifying digital identities and making transactions with crypto assets traceable.

For their develpment, the selected clients gave pesos to the exchanges, who, in return, gave them crypto assets on their respective platforms.

High-risk

Ultimately, the future regulation intends that Colombians carry out operations with crypto assets in a similar way as is currently done with electronic commerce.

(Outstanding: Citadel, Fidelity and Charles Schwab work on a cryptocurrency platform)

Namely, making electronic purchases and sales to these third parties of the crypto sectorjust as it had been operating in the arena.

According to Hernando José Gómez, president of Asobancaria, “the idea is that the banks continue doing the cash in y cash outand we will not be in the process of custody or offer of these products”.

Hernando José Gómez, president of Asobancaria, said that some entities in the sector could offer portfolios that include crypto assets

Yes indeed, was clear in saying that some entities could offer portfolios that include crypto assetswhich would be specifically aimed at people who are willing to take this type of risk.

“They could be, for example, investment funds denominated in this product,” said the union director.

And he noted that these digital assets have great volatility and involve high risks, which is why financial entities and the standard must make clear the possible consequences of the same.

(Also read: What is P2P cryptocurrency trading? Advantages and disadvantages of this Exchange)

In any case, for the president of Asobancaria, the experiment that was carried out in the sandbox showed that many people who use cryptocurrencies are interested in having this traceability.

However, a larger group uses them as a mechanism to avoid being tracked in their operations.

“Undoubtedly, here we saw that there was not a great enthusiasm to do this in a totally visible and traceable way”, he concluded.