Gemini Partners with Colombia's Largest Bank for Crypto Trading

New York-based cryptocurrency exchange Gemini has announced that it is expanding into Latin America through an upcoming partnership with Colombia’s largest bank, Bancolombia.

The partnership will take effect on December 14 and will allow Bancolombia’s clients to trade 4 crypto assets. Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).

A limited number of users will be able to purchase cryptocurrencies directly from their Bancolombia bank accounts through the Gemini Exchange, which will provide a cryptocurrency-specific infrastructure for trading and custody of assets. It remains unclear whether users will be able to withdraw their cryptocurrency holdings directly from their accounts.

In a Dec. 6 announcement about the partnership, Gemini said it was "an important step in Gemini's strategic expansion in Latin America."

“We believe that cryptocurrencies can play an important role in the development of Latin America as interest in blockchain and innovative technologies surges across the region.”

The partnership will be part of a one-year pilot project by Colombia's financial regulator, the Superintendence of Finance of Colombia (SFC). In September 2020, the Ministry of Finance and Public Credit approved the regulatory sandbox "la Arenara".

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In January, the SFC announced that it had selected nine of the 14 cryptocurrency exchanges that applied for the program, including Gemini, Binance and Mexican exchange Bitso.

Since El Salvador made BTC a legal tender on Sept. 7, Latin America has made strides toward mainstream cryptocurrency adoption. In October, JP Thieriot, CEO of multicurrency investment platform Uphold, told Cointelegraph that Latin America would “benefit the most from cryptocurrencies.”

Gemini currently operates in more than 60 countries, including Argentina, Brazil, Chile, El Salvador, Panama, Peru and Uruguay in Latin America.

Bancolombia operates in Colombia, Panama, Guatemala and El Salvador. It has 17.8 million subscribers, according to an internal report last year.

In March, Colombia’s oldest bank, Banco de Bogotá, also announced that it would also be piloting crypto services as part of la Arenara. A year ago, in March 2020, Cointelegraph reported that Latin America was the third-largest region in the world for crypto users.