Colombian Government Invites Companies To Trial Its Crypto Transaction Framework

The government of Colombia has approved a pilot project regarding the testing of crypto transactions by the companies. This was done on September 22 and will be done till December 31, keeping the country’s financial situation’s regulatory sandbox.

The head of Colombia’s Financial superintendence(SFC), Jorge Castaño, even stated that the companies who wish to be a part of the cryptocurrencies trial should register by the end of this year since the pilot will run in 2021.

On April 4, 2019, the draft bill stating to regulate the crypto exchange platforms in the country Colombia came into existence. The aim of the law was simple. It basically means how Colombia’s companies should operate and provide crypto exchange services to optimize customer service.

The new regulatory sandbox has been appropriately approved by the Ministry of finance and the public credit on September 14. The SFC has clearly stated that this space pretty much enables to maintain the right balance between proper regulation and promotion and support of new technological advances that will be applied to financial services. It also focuses on the comprehensive supervision of the entities under surveillance and the prevention of any such apprehensive situations.

The host of the panel Mauricio Toro who is a local congressman and the author of that particular bill, basically aims to regulate the crypto industry in the entire Colombia, which is a significant factor to consider. He even mentioned that the pilot program would consist of five stages in total: application, selection, structuring, monitoring, and the feedback provided after all of that.

Four Colombian service providers have already registered for it to participate in the trial, which is a great start. More companies will become part gradually, and the trial will be a great success if it works out properly. There is no timetable fixated as of yet, though, but there is a high probability that it will be in the year 2021.

There have been various reasons for the bill to stay on hold. Some of them are the clear stance of the SFC towards crypto. However, Toro also commented that with the trails’ initiation, the process might speed up if things go directly down the line without any hassle. The bill can be easily implemented at least by the year 2022.

After the bill’s implementation, the crypto industry will undoubtedly have a better limelight and more exposure since more people will be certainly aware of the existence of this even though it has already caught the headlines. This is a critical industry and needs proper rules and regulations so that companies can follow that seamlessly without having any issue.

Furthermore, the regulation will help the companies have a better grip and implement better policies for the betterment of the people. Along with that, the trials will be a great way to check if the framework is a suitable option for the companies or not. Thus, all in all, this is surely one of the most crucial bills out there and a high probability that the result will be impeccable.