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Crypto Assets Pilot Plan in Colombia Is Underway – with Delays

  • Only one of the six formed alliances is fully operating, while the others face delays related to meeting quality standards.
  • The other companies have announced that they will soon begin operations before the deadline set by the Colombian regulator expires.

With just six months remaining of the legal period set by the Financial Superintendence of Colombia (SFC) for the development and execution of the country’s first crypto active pilot plan, the operational alliance of the companies MOVii and Bitpoint is the only one of the six established that is currently active.

The delays for the operation of the other companies associated with the exchange platforms are due to the fact that they have not yet been able to comply with the requirements given by the Colombian regulator. Nor do the companies have the technological capacity to give “follow-up and traceability to each movement,”according to local website www.larepublica.co.

To date, the operations carried out by the MOVii – Bitpoint alliance involve some 500 million pesos being traded by around 2,000 active users. The cryptocurrencies authorized for sale in the pilot plan include Bitcoin, Ethereum, Litecoin and Bitcoin cash.

"We continue to understand the user, reviewing how to improve the experience, providing information to make transactions without fear, and reviewing more options to serve the market,"

said MOVii CEO Hernando Rubio.

"We hope to also have Ripio linked soon and thus increase the options for our clients," 

he added.

Traditional Banks and Exchange Platforms Make up the Alliances

The Evaluation and Monitoring Committee of the crypto asset pilot plan, which chose the participating companies, was made up of representatives of the Presidency of the Republic, the SFC, the Superintendency of Companies, the Financial Information and Analysis Unit, (Uiaf) and representatives from Colombian academic institutions.

The companies chosen for the pilot plan were formed in alliances made up of traditional banks and well-known international exchange platforms. The authorized company alliances that were charged with presenting concrete results within the next six months are: Davivienda and Powwi working together with Binance; Coltefinanciera and Obsidiam; Banco de Bogotá alongside Bitso and Buda.com; Bancolombia and Gemini; Coink with Banexcoin; and MOVii with Panda and Bitpoint.

"We continue to work on the regulations and technology necessary to comply with the guidelines established by the Superfinanciera," 

said Mario Castro, CEO of Coink, which will soon launch its operations.

"We want to provide all guarantees to our users when buying and selling digital assets, for which we need a robust infrastructure," 

explained Castro.

The Bancolombia – Gemini alliance is also reportedly about to begin operations along with the alliance headed by Banco de Bogotá.

"We will be starting cash-in and out operations this week within the program that we have with the superintendency's sandbox," 

announced the head of Bancolombia, Juan Carlos Mora.

The crypto asset pilot plan, created by the Colombian regulator, seeks to analyze the Colombian market and ensure that future regulated operations comply with certain “security standards and adequate risk management.”

Although, the current commercialization of digital assets in the country is carried out in a market parallel to the financial system. Banks only offer backing for specialized applications, as reported by the newspaper.

On The Flipside

  • Despite the obvious delays seen in the SFC pilot plan, the adoption and regulation of BTC and other cryptocurrencies in Colombia is progressing by leaps and bounds.

Why You Should Care?

  • Recently, the Innovation Committee of the Financial Superintendency also approved the first pilot program for the issuance of bonds in the secondary market, based on blockchain technology, as well as smart contracts within the Sandbox.
  • The operation, which will comply with all the stages of a traditional issuance, will be led by the financial entities Davivienda and IDB Invest, with Banco de la República acting as an overseer.

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