- The alliance between Binance and Davivienda seeks to provide legal financial support to cryptocurrency operations in Colombia.
- The pilot plan, coordinated by Colombian regulators, hopes to quickly capture some 7,000 clients who will be able to make bank deposits and withdrawals in authorized cryptocurrencies.
Binance and Davivienda, the largest bank in Colombia in terms of assets, announced the start of financial operations in cryptocurrencies. The alliance between the two companies is part of a pilot plan directed by the Financial Superintendence of Colombia (SFC).
The Colombian regulator approved the pilot plan for crypto assets in January last year, though commencement of the plans did not occur until December. Binance and Davivienda expect to capture around 7,000 users in the initial stages, and those clients will be able to carry out cash in and cash out operations.
To do this, customers may use any of the four cryptocurrencies authorized by the regulator: Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH). Given the simplicity with which the Binance platform operates, it is expected that users will be able to carry out their operations without any setbacks.
"After the great challenge that this pilot plan means, we are very satisfied when starting operations," remarked Binance Latam's Director of Operations Maximiliano Hinz to local media outlet LaRepública.co.
He added that:
“This represents a great opportunity to show that we are on the right path, following what our CEO, Changpeng Zhao, said, that we will go for every opportunity we have to obtain licenses around the world.”
As the pilot concludes and the startup, follow-up, and feedback phase begins, Binance will continue to expand to a larger number of users throughout Colombia.
Binance Wants to Cover the Entire Country
The exchange hopes to achieve 100% coverage in the country and continue to attract more clients interested in the cryptocurrency industry.
"Colombia means the first of its kind in Latam, and represents a great advance and precedent in the region," said Hinz.
He stressed that the company was very pleased, and proud to work in coordination with the Colombian regulator “in this great initiative for the country and the world.”
"And what better than doing it hand in hand with Davivienda, which is one of the most recognized and innovative banks, always for the benefit of Colombians, who with this have the opportunity to improve the quality of their finances," added the executive.
On the Flipside
- The Colombian regulator has taken an approach of close supervision over the cryptocurrency industry in an attempt to prevent drug trafficking from taking over the crypto industry.
Why You Should Care
The South American country has been one of the fastest to adopt the use of cryptocurrencies in the region. In fact, according to the latest data from Statista, it ranks ninth in cryptocurrency trading globally.