Colombia’s first commercial bank will allow users to transfer money to Crypto Exchange

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Banco de Bogotá, the first commercial bank to be established in Colombia, plans to test the authorization of deposits and withdrawals with a crypto exchange.

As part of a government-sponsored pilot program to test banking services for crypto platforms, Banco de Bogotá will allow bank customers to send and withdraw money from Chilean crypto exchange Buda. com in August, said Alejandro Beltrán, Colombia manager for Buda.com. .

Although the service is expected to start at the start of the month, the two sides are still defining the terms and conditions of the contract, Beltrán told CoinDesk.

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“The Banco de Bogotá has been very detailed and careful in this process, which is understandable as it is entering a new world and they want to understand it in all its dimensions,” said the executive.

In January, Colombia’s financial watchdog, the Colombian Financial Superintendent (SFC), announcement that nine crypto firms (out of 14 applicants) were chosen to test crypto platform banking services as part of a one-year project.

The agreement between Buda.com and Banco de Bogotá would be the second to be launched. The Bitpoint crypto exchange started operating with Colombian fintech Movii this month, along with the Panda crypto exchange.

Banco de Bogotá will also work with Mexican crypto exchange Bitso, although that partnership has not yet started either, Beltrán said.

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Among the nine exchanges chosen by the SFC is Binance, which will operate with Colombian bank Davivienda and fintech Powwi, while Gemini plans to operate with Bancolombia.

Until the adoption of the pilot program, banks had limited money transfers to crypto exchanges due to financial regulations, although people did them without specifying that they were crypto trades, said. Beltrán said.

Although the pilot program is not intended to lead to new regulations, it will allow exchanges to work with large banks that have broad coverage and more experience, said Beltrán, who added that it also allows the SFC to understand how the crypto industry works.

The Colombian government launched a “regulatory sandbox” last September to expand its fintech regulatory testing environment, while regulators have issued crypto tax guidelines as well as anti-money laundering (AML) regulations.

Banco de Bogotá has also launched a pilot program to examine business models related to crypto assets. earlier this year.

Beltrán said the pilot program is not part of the regulatory sandbox and does not seek to regulate the industry.

“We believe that in the future it may be a benchmark for regulation, but this test is not intended for that purpose,” he said.

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