Pilot with cryptocurrencies in Colombia is about to end

Pilot with cryptocurrencies in Colombia is about to end

At a time when the cryptocurrency market is going through a 75% devaluation of bitcoin, the bankruptcy of several platforms and millions in losses in the world, the test pilots for the deposit and withdrawal of resources that the Financial Supervision With seven of nine initial alliances, between supervised entities and exchange platforms, it is about to end, and a circular is to be issued.

(Three out of four people who bought bitcoin lost money.)

These exercises have been carried out since the beginning of 2021 in the sandbox of the Superfinanciera with seven of the nine initial alliances and according to the entity they will end soon and a regulation will be issued almost simultaneously for the supervised entities.

The norm refers to the evaluation of clients of the supervised entities when they are providers of virtual asset services and the strengthening of the provision of information to the consumer when there are alliances with those providers.

According to the Financial Superintendency, reports must be made to the Financial Information and Analysis Unit (UIAF), a risk management system for money laundering, terrorist financing and proliferation of weapons of mass destruction that meets the guidelines of the International Financial Action Task Forcehave technological and operational conditions to carry out the traceability of transactions with virtual assets and extensive information to the public on costs, fees, account statements and their balances.

(Binance defended itself and denied involvement in the FTX crash and bankruptcy.)

Additionally, an operational and cybersecurity risk management system, with technological tools to manage this risk.

The Superfinanciera says that the regulation does not mean that crypto assets will be regulated.

What specialists and sources in the sector indicate as “a crypto winter” mentions a combination of factors ranging from high inflation, rising interest rates, collapsed prices of cryptocurrencies and the bankruptcy of large players and platforms and the defrauding of the trust of thousands of customers with the ‘evaporation’ of billions of dollars of accounts.

According to a Binance spokesperson, one of the platforms that participated in an alliance with Davivienda in the test pilot, “the market will take care of weeding out bad actors who misuse user funds, but as regulatory frameworks and technology develop, the crypto ecosystem will become stronger”.

For his part, Tyler Roessel, director of public relations at Phemex, a global derivatives and cryptocurrency trading platform based in Singapore, points out that although the market is down and there are entities that have exited it, some of them are specific to cryptocurrencies, “many are a consequence of unsustainable business models, the absence of genuine liquidity and the absence of real governance and supervision” and indicates that “the industry is already moving to have a form of self-regulation”.

(FTX misused client funds and causes cryptocurrency crash.)

Felipe Vallejo, head of Regulatory Affairs and Public Policy at Bitso, who participated in the pilot with Banco de Bogotá, mentions that the use of cryptocurrencies in remittances amounted to US$2.1 million that passed through Bitso between January and September and the accounts of businesses, companies and institutions that use Bitso as a B2B service grew 73%.

Last week, in the second debate in the House of Representatives, a bill of parliamentary origin was approved that establishes information requirements and custody of crypto assets for exchange platforms and a regulatory framework.


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