Colombia Authorizes 9 Alliances among Local, Regulated Banks and Crypto Exchanges for Bitcoin-to-Bank Sandbox
The Financial Superintendency of Colombia (FSC) has recently authorized 9 partnerships between local banks, regulated banks, and cryptocurrency exchanges. Reports say that these alliances are part of a pilot program called “LaArenera” (meaning “the sandbox”). It starts in March 2021 and will continue till 2022. This pilot program will enable these partnering entities to carry out financial operations under the scrutiny of Colombian regulators.
Initially, under this LaArenera program partnership will be forged between:
- Bancolombia with Gemini
- Davivienda and Powwi with Binance
- Banco de Bogotá with Bitso and Buda
- Coltefinanciera with Obsidiam
- Coink with Banexcoin
- Movii with Panda and Bitpoint
FSC started exploring Bitcoin usage in Colombia since 2020. An official note was also published last year, clarifying that there are no prohibitions against companies in Colombia using their funds to purchase Bitcoin (BTC). As per the “LaArenera” (or “the sandbox’) program, the partners will conduct financial operations under the scrutiny of Colombian regulators.
Explica said:
“The regulatory body reported that, once the application and selection phase is completed, the structuring phase will begin in which exchanges and banks will carry out operations with crypto assets… One aspect that stands out is that two of the most important exchanges in the Bitcoiner ecosystem applied for evaluations. In the event that Binance and Gemini successfully complete the evaluations together with the allied banks, then they would be formalizing their operations to the local market, all with the approval of the authorities.”
Reports say that this sandbox program will help a sub-developed country like Colombia to be recognized for real opportunities to future investors instead of being known as a drug market. This pilot program has the potential of changing Bitcoin’s perception around the world, on one hand, and bring a paradigm shift in the investment opportunities in the Colombian stock market, economic infrastructure, and its own citizens.
Experts believe that this pilot program could make Colombia the leading most option for the retirement of bitcoin millionaires and bitcoin investors across the globe.
