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Colombia’s Financial Sector May Be Allowed to Pilot Crypto Transactions

Financial Services Latin America

Regulation

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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Last updated:

June 25, 2023

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Colombian banks may be permitted to test crypto transactions in a new regulatory sandbox, after a presidential advisor stated that a top financial regulator may actively seek the aid of the nation’s financial sector to pilot crypto-powered business.

In a tweet, presidential economic and tech adviser Víctor Muñoz wrote that the Superintendencia Financiera (Superfinanciera), a Colombian government agency that oversees financial regulation and markets, will “issue a call for the financial system to test fiat in and fiat out transactions using cryptoassets” using a new regulatory sandbox.

Details of the sandbox were unveiled earlier this week in a presidential decree.

Muñoz added that the regulator wanted to accrue “evidence for an intelligent regulatory framework, based on experience, data and knowledge.”

However, some are calling for crypto enthusiasts in the nation to curb their excitement at the news. Media outlet Criptonoticias noted that the decree makes no mention whatsoever of cryptoassets in its 12 pages.

The media outlet also noted that many crypto exchanges have met the sandbox developments with some degree of skepticism.

The publication quoted Bitcoin Colombia chief Carlos Mesa, as stating,

“We hope this call will come very soon and that it will welcome companies that are already established in this sector.”

But others took a more optimistic tone, with Mauricio Tovar, the co-director of blockchain academic research group InTIColombia, tweeting,

“This is important news. The financial sector will be able to experiment with crypto using the Superfinanciera’s sandbox.”

Meanwhile, as reported this pas summer, Colombian regulators were urged to start drawing up the country’s crypto legislation again from scratch. A consultancy group comprising Columbian crypto and blockchain industry chiefs told Bogotá to abandon earlier plans for regulation that were formulated back in 2018. The group stated that the plans were already outdated, and new debates needed to be held.

In August, the Colombian Ministry of Technology has spoken out in favor of blockchain and crypto innovation for the public sector. In an official release, the ministry claimed the country was “lagging behind” its international rivals when it came to adopting blockchain technology. The ministry suggested adopting blockchain-powered health record management platforms, crypto pay infrastructure, and blockchain-powered voting systems.
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