Colombia’s banking sector maintains that the crypto-currency sector can strengthen the country’s financial system.
Within the framework of the digital forum entitled „Panorama for the regulation of cryptoactives in Colombia“, the directive of the Banking Association of the Latin American country maintained that the crypto-currency sector can reinforce the country’s financial system, as long as they are under a regulatory model that allows them to have control over them. This was made known by the digital media Towla24, through its web page.
The event was centered on a debate on the regulation of cryptoactives and the projects for the use of blockchain that the Colombian government is carrying out, after the Ministry of Finance and Public Credit approved last September 14 the Sandbox decree, which aims to evaluate the operating parameters of crypto-currency exchanges, in addition to monitoring their activity within this ecosystem.
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The digital debate, had two panels: a first panel, where vertical discussions on cryptomonies and another on blockchain were held. The mentioned event was organized by the congressman Mauricio Toro, together with the organizations, Colombia Fintech, Fundación Blockchain Colombia, Alianza Blockchain Iberoamericana and also had the presence of the presidential advisor Jehudi Castro.
Standards for the regularization of the sector
During the course of the digital event, Asobancaria’s vice-president, José Manuel Gómez, reiterated that the banks are open to the entry of new competitors, such as crypto-currency companies, which could complement, offer new services and reinforce the system. „But this entry must be regulated,“ said the executive.
In his participation in the discussion, the president of the Banking and Financial Entities Association of Colombia (Asobancaria), Santiago Castro, expressed that, in the financial sector of the country, there is currently an opening to participate in the world of bitcoin and crypto-currency.
He also stated that, „-despite the good disposition- the banking entities move in a highly regulated sector. For this reason, they must, in the first place, comply with the existing rules and laws“ (…) „However, we are now waiting for the approval of the regulatory Sandbox“, he said in reference to the initiative recently approved by the government of that country for the regulation of the exchange of cryptoactives.
In this regard, the Vice President of Asobancaria, mentioned that they are waiting for instructions from the country’s monetary and supervisory authorities, so for now they continue to conduct tests in the controlled space of the Sandbox and recalled that, so far, cryptoactives are not recognized by the Bank of the Republic of Colombia, so they cannot be admitted as currencies.
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„We move in that frame. The Financial Superintendence knows that we cannot operate with crypto-currency and does not allow the use of our infrastructure to carry out operations with this type of asset,“ he said.
Now, under this context, Mauricio Tovar, president of the Blockchain Colombia Foundation, mentions the difficulties of exchange houses to open accounts and work with banks, stating that, „This problem has caused the country to lose many investment opportunities, innovation and jobs“.
The president of the Foundation said, recalling the current situation experienced by the exchange houses in the South American country, due to these limitations and the lack of regulation.
According to and as can be seen from the article, Mauricio Tovar adds that despite the fact that Colombia is among the 5 Latin American countries with the highest number of transactions with cryptoactives, many platforms decide to operate in other parts of the region.
„Venezuela has the highest number of transactions, but due to the difficulties faced in that country, entrepreneurs see Colombia with greater interest. However, the regulatory uncertainty in which we find ourselves causes them to go to other sites, such as Argentina, for example,“ says the president of the Blockchain Colombia Foundation.