Colombia’s government has released draft rules for crypto companies that want to operate in the country, several months after the launch of the South American nation’s regulatory “Sandbox” project. (Not to be confused With The Sandbox, which is one of the most prominent blockchain-powered metaverse realms.
Public comment will be allowed on the initiative. proposed regulations, put forward by the Financial Superintendence of Colombia, the country’s financial regulator.
These rules provide a framework for preventing money laundering and terrorist financing. They also include cybersecurity guidelines and methods to track crypto transactions.
Colombia’s approach to crypto-buying is a positive sign that it is moving toward a future where people can use their traditional banking accounts to purchase the cryptocurrency.
Colombia’s “Sandbox” (or LaArenera) is a unique Latin American crypto experiment which kicked off last year after being approved by the government in 2020. It allows Colombian banks the opportunity to partner with crypto exchanges such as Bitso and Binance to make it possible for citizens to buy Bitcoin, Ethereum, and other digital assets.
Bancolombia—the country’s largest bank—Strike As part of a one year pilot program, Gemini, a New York-based exchange, made a deal in December that allows a select number of clients to purchase Bitcoin Cash, Ethereum, Litecoin and Litecoin from their accounts.
And in January, Binance, the world’s biggest crypto exchange, Get started its pilot with Colombia’s third-largest bank, Davivienda, allowing 5,000 of its bank’s customers to snap up digital assets.
Nine banks in Colombia are participating in the experiment that was supposed to last one-year. Decryptreported in November that the “Sandbox” had been slow going until then. Although the program was supposed to end in March, it has been apparently delayed.