The Monetary Superintendence of Colombia introduced a undertaking that seeks to deliver readability to how hyperlinks between banks and digital asset service suppliers (VASPs) will likely be dealt with in the longer term. The doc defines sure key ideas and determines a set of stipulations that banks have to confirm earlier than accepting digital asset service suppliers as prospects.
Digital Asset Service Suppliers to Be Regulated in Colombia
Regulation is changing into a key aim for nations in Latam, the place cryptocurrency adoption is rising at vital charges. Now, the Monetary Superintendence of Colombia has introduced a doc that seeks to determine norms relating to the necessities cryptocurrency exchanges and custody suppliers should meet to be serviced as prospects by banks. The undertaking defines key ideas akin to digital asset service suppliers (VASPs), and digital property in the scope of the regulation.
In the identical approach, it establishes that digital asset service suppliers must be linked to the UIAF, the monetary intelligence workplace of Colombia, and have a plan of motion to cope with cash laundering and terrorism financing makes an attempt that may doubtlessly be made utilizing their platform.
The undertaking additionally makes an oblique reference to compliance with the journey rule promoted by the Monetary Motion Activity Drive (FATF). It states banks should confirm these VASPs have:
The technological and operational capability to observe transactions with digital property, in addition to to acquire, protect and transmit the data of the originator and the beneficiary of every transaction.
Extra Necessities
The proposal establishes that the VASPs could have to have the ability to current clear info to their prospects concerning the companies they provide and the dangers related to these companies, the prices related to these companies, and the digital property current on their platforms.
VASPs may also have a plan to cope with operational and cybersecurity-related dangers to deal with attainable hacks or platform issues that may have an effect on how their companies are delivered to their prospects. Additionally, banks could have the duty to separate their duties from these of VASPs, telling prospects that solely they and these platforms are accountable for VASP-related issues.
The proposal additionally establishes restrictions relating to investments. It states:
The supervised entities approved to seize assets via deposit merchandise or funds should make sure that the operations of deposit and withdrawal of assets in monetary merchandise of deposit or funds in the title of a VASP are carried out solely via non-face-to-face channels.
The proposal continues to be in the dialogue levels, and the Monetary Superintendence will obtain solutions about it till August 12.
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