TL;DR Breakdown
- Gemini, Bancocolombia partner to deliver soft crypto services tolocals.
- With the partnership, locals can trade crypto directly from their Bank accountants.
- Crypto continues to get welcomed in Latin America.
Colombians are next in line to be given easy access to buy and sell cryptocurrencies via their bank accounts.
The country’s new regulatory sandbox is beginning to become a success as more banking institutions begin to offer cryptocurrency services to their clients through arrangements with leading crypto firms.
Bancolombia, the largest bank in the country, has struck a partnership deal with Gemini exchange owned by the Winklevoss twins to allow locals in the country by crypto directly from their bank accounts from December 14.
Customers of Bancolombia will be open to trading BTC, ETH, LTC, BCH from their account as the pilot phase of the project begins. The financial Superintendence of Colombia, the country’s financial regulator, will oversee the project.
How Bancolombia, Gemini partnership works
The bank would be in charge of and king clients fiat funds while the crypto firm provides the infrastructure for the exchange and custody of cryptocurrencies, whether for withdrawals, deposits, or hodling of assets.
According to Gemini, the move was a strategy for the exchange to expand.
“The partnership also serves as an important step toward the strategic expansion of Gemini’s presence in Latin America,” said Cynthia Del Pozo, who leads principal, strategy, and corporate development at Gemini, in a press release. “We look forward to working closely with the Colombian crypto ecosystem and to supporting crypto products that empower locals to take control of their financial lives.”
Govt continues to welcome crypto with open hands in Latin America
The regulatory sandbox is unique to scores of countries in Latin America, with steady progress over the months.
Nine projects have been approved for implementation, with only two in the operational phase. Gemini with Bancolombia and the Bitpoint exchange and payment startup MOVii. Other projects involve players such as Binance and the Latin exchanges Bitso and Buda.com.
Currently, Brazil and Spain have also designed policies similar to the Colombian one. Brazil’s regulatory sandbox is focused on promoting fast and efficient payment systems, while Spain seeks to strengthen its security and compliance mechanisms.
