Largest bank in Colombia partners with Gemini to offer crypto trading

• The biggest bank in Colombia, Bancolombia has inked a deal with Gemini to start offering cryptocurrency trading.
• Citizens will be able to access digital asset trading services directly from their bank accounts starting on December 14.
• However, crypto assets are limited to Bitcoin, Ether, Litecoin and Bitcoin Cash for the first year.

Colombian citizens could soon purchase cryptocurrencies directly from their bank accounts starting on December 14. The country’s largest bank, Bancolombia has partnered with digital asset exchange Gemini to offer crypto services.

Colombia to boost crypto adoption

Residents in Colombia will soon be able to buy their preferred cryptocurrencies using their bank accounts. United States-regulated exchange Gemini revealed that it has completed the process of the implementation phase necessary for Colombians to purchase digital assets through the funds in their Bancolombia accounts.

Gemini will provide the infrastructure for the exchange and the custody of digital assets for withdrawals, deposits and holding of the new asset class. Bancolombia will oversee the client's pesos funds, the official currency in the country.

Cynthia Del Pozo, principal, strategy and corporate development lead at Gemini stated that the partnership is an important step toward the expansion of the exchange’s presence in Latin America. The firm hopes to support the Colombian crypto ecosystem and empower citizens to take control of their financial lives.

The country’s largest bank has over 16 million users in 2020 and total assets amounting to $275.76 billion. The move comes as part of Colombia’s new regulatory sandbox, which has progressed slowly since its launch in April. The sandbox was implemented as a way to encourage innovation in financial services, granting certain advantages to new companies that wish to test the viability of their businesses. 

Colombian residents will be able to purchase cryptocurrencies starting December 14. However, only a limited number of users will be able to purchase Bitcoin, Ethereum, Litecoin and Bitcoin Cash from their accounts during the one-year pilot program, which will be overseen by the country’s financial regulator, the Financial Superintendence of Colombia.