Colombia’s biggest bank partners with Gemini crypto exchange to start offering bitcoin and ethereum to its clients and now customers will be able to buy crypto from their bank accounts in the one-year pilot. Let’s find out more in today’s latest cryptocurrency news.
The residents of Colombia will be able to purchase crypto such as BTC directly from their bank accounts. The decision came as a part of Colombia’s new regulatory sandbox which is the start of the journey where other banking institutions start to offer crypto services to their clients via arrangements with the leading crypto firms. Colombia’s biggest bank will allow its citizens from December 14, to buy crypto via their bank accounts thanks to a deal with the Winklevoss-owned crypto exchange Gemini.
A limited number of Bancolombia clients will be able to buy ETH, BTC, LTC, or Bitcoin Cash from their accounts as a part of the one-year pilot program. The program will be overseen by the financial regulator in the country- The Financial Superintendence of Colombia. Bancolombia will handle the clients’ fund while Gemini will bring the infrastructure for the exchange and custody of crypto for deposits, withdrawals, or holding assets. Cynthia Del Pozo who leads the corporate and principal development at Gemini said:
Bancolombia will handle the client’s fiat funds, while Gemini will provide the infrastructure for the exchange and custody of cryptocurrencies, whether for withdrawals, deposits, or holding of assets.
“The partnership also serves as an important step toward the strategic expansion of Gemini’s presence in Latin America. We look forward to working closely with the Colombian crypto ecosystem and to supporting crypto products that empower Colombians to take control of their financial lives.”
Colombia’s regulatory sandbox is quite unique but it did have slow progress since the beginning of April. Only one of the nine approved projects moved beyond the planning phase like the MOVii-Bitpoint Initiative which integrates both platforms so the users can purchase crypto on Bitpoint via their fiat accounts. The joint Bancolombia and Gemini project will be the second of nine to move ahead and the first to involve a top crypto exchange. Although Bitso and Binance have their names attached to other projects, there was no progress yet being made beyond the initial design phase.
Meanwhile, the MOVii and Bitpoint initiative surpassed 2000 active users and reported close to $500 million in funds via crypto since November. The CEO of MOVii Hernando Rubio said that the startup is working on a new integration with the Latin American crypto exchange Ripio to boost the customer base as well as the services that it offered.
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