Superfinanciera, Colombia’s financial authority, stated that Movvi and Bitpoint have been granted permission to operate in the country. Colombian consumers can now utilize the two platforms to undertake cash-in and cash-out operations after the pilots were evaluated by the entity’s Assessment and Tracking Committee.
The committee was established to oversee the operation of crypto assets within the country’s financial system. The 12-month pilot scheme would require users to withdraw their Colombian Pesos (COP) or cryptocurrencies while the platform works out the details of local regulations. Until then, users can exchange, transfer, and operate using either COP or crypto on the platform.
The platform’s service, according to Mónica Saavedra, product manager: “The objective is for any user who wants to acquire cryptocurrencies to register in MOVii and Bitpoint. They will be able to send money in fiat currency utilizing a digital wallet for the purchase and sale of crypto assets in a matter of minutes.” The government of the country has maintained a positive stance toward crypto, but has yet to build a regulatory framework that governs users and platforms. Despite the fact that numerous cryptocurrency exchanges have petitioned the regulator to enable them to establish a pilot program to operate outside of the law’s confines, none have been successful until now.
Colombia is focusing on investor protection At the moment, Colombian users that participate in the bitcoin market are not protected by any legislation. Regulators are taking the initial steps to make this operation not only safer, but also easier for the common person, with the beginning of this pilot program. With Colombia having one of the world’s top crypto transaction volumes, the decision comes at a time when Colombian investors are demanding greater transaction security.
Julian Geovo, Bitpoint’s Latin American Operations Manager, emphasized the importance of the moment, saying, “The crypto asset market has been in Colombia for many years.” It’s encouraging to see that regulatory bodies are striving to create the circumstances for thousands of people and businesses currently involved in the crypto world to function in a secure and long-term manner.” The Colombian government has opted to treat digital currencies as assets rather than currencies, making cryptocurrency transactions more secure. The government is making it easier for investors to comprehend risks and have access to crucial information by launching pilot projects like this one.
Colombian Authorities Are Watching Crypto Colombia ranked seventh in the world in terms of Bitcoin trade volume in 2020, indicating that the country’s residents are interested in the rapidly growing technology. As a result of this enthusiasm, the Colombian government is planning to deal with the regulatory issues of cryptocurrency.
In April of 2021, Jehudi Castro, Colombia’s digital transformation adviser, told us that “the effect of all this crypto activity is that we have to be vigilant.” We can’t sit by and do nothing,” says the government, which has developed a number of regulated testing settings since 2020, including anti-money laundering and crypto tax legislation.
Back in January, local commercial banks were given permission to form partnerships with international cryptocurrency exchanges to provide crypto-related services. Of of 14 applicants, 9 crypto firms were chosen to participate in the pilot, including Banco de Bogota – Bitso, Banco de Bogota – Buda, Bancolombia – Gemini, Coltefinanciera – Obsidiam, Davivienda – Binance, Powwi – Binance, Coink – Banexcoin, Mo Banks were authorized to assist cryptocurrency transactions, but not to have a direct link with cryptocurrencies by retaining them at any point during the process.