Government of Colombia invites companies to test crypto transaction in its pilot program 

The government of Colombia has taken a huge step towards regulating cryptocurrency within its jurisdiction.

On the 22nd of September, the Colombian government kick started a pilot program asking companies to test cryptocurrency transactions till 31st of December, 2021 within the regulatory sandbox recently approved by Colombia’s Ministry of Finance and Public Credit.

See Also: Goldman, Visa and Mick Mulvaney join the Chamber of Digital Commerce

The disclosure was made during a panel titled “Overview of the Regulation of Crypto Assets in Colombia,”. Companies interested in testing crypto transactions were asked to apply by Jorge Castaño, head of Columbia’s Financial Superintendence (SFC) from September 22nd till the end of the year. The pilot program is expected to commence in 2021.

Jorge Castaño, also mentioned that about four Colombian financial service providers have so far expressed interest in participating in the pilot program. Although there’s no set date for the commencement of the pilot program in 2021.

The panel was hosted by Mauricio Toro, who is a local Congressman and also sponsored the bill aiming to regulate the cryptocurrency industry in Colombia.

Jorge Castaño, head of Columbia’s Financial Superintendence (SFC) in a conversation with Mauricio Toro said the pilot program will be carried out in five stages, namely: application, selection, structuring, monitoring and feedback.

Colombian local congressman, Mauricio Toro sponsored a bill on April 4, 2019. The draft bill aimed at defining in general terms how companies in Columbia offering crypto exchange services should run their operations and in the process be regulated.

Although due to unclear stance by Columbia’s Financial Superintendence (SFC) in regards crypto, approval of the bill has been delayed. But, Congressman Toro believes with the launch of the pilot program for testing crypto transactions this could provide some clarity, speed up discussions and probably provide a framework to be able to pass the bill in 2022 in congress.