Key Takeaways
- Banco de Bogota starts testing a new project to allow users to transfer crypto assets via bank
- Nine exchange platforms have been chosen to monitor the observation
- Strict regulations to curtail money laundering activities.
This information was revealed by Alejandro Beltran, the national director of Chile-based exchange Buda.com. According to Beltran, the development is part of an initiative from the Colombian government to test banking services for crypto platforms.
With this in place, Banco de Bogota will allow customers to send and receive money from Buda.com. The agreement is expected to begin soon, and both parties are currently developing terms and conditions for the financial contract.
Beltran also noted that the Colombian bank is being cautious with how it would deliver the new service. Colombia's financial regulator, SFC, had announced a testing phase that would integrate crypto services with the existing banking system earlier in the year.
Nine crypto companies had been chosen to work with different financial organizations in the country. Banco de Bogota's partnership with Buda.com is the second major development from this initiative.
Binance and Gemini are also members of the initiative and will work with Davivienda and Bancolombia, respectively. The launch of the pilot program has eased existing restrictions within the Colombian financial system.
It is expected that the test phase will help the South American nation to propose comprehensive crypto regulations. Colombia does not have a defined crypto regulatory law and has sought to provide clear regulations for crypto service providers.
This development is great for the crypto industry and shows that governments globally are beginning to adopt cryptocurrency within their financial systems.
Do you think the Colombian government is doing the right thing by allowing banks to handle crypto transfers?
