Colombia Advances Regulatory Framework for Local Crypto Industry

Colombia’s government has released draft rules for crypto companies that want to operate in the country, several months after the launch of the South American nation’s regulatory "Sandbox" project (Not to be confused with The Sandbox). The public will now be able to comment on the proposed regulations, put forward by the Financial Superintendence of Colombia, the country’s financial regulator. The rules propose a risk management system for money laundering and terrorism financing, as well as cybersecurity guidelines and ways to trace crypto transactions. The approach affirms that Colombia is working toward a future where citizens will be able to buy crypto via their traditional banking accounts. Colombia’s "Sandbox" (or LaArenera) is a unique Latin American crypto experiment which kicked off last year after being approved by the government in 2020. It allows Colombian banks to partner with major crypto exchanges like Binance and Bitso to allow citizens to acquire Bitcoin, Ethereum or other digital assets.