Bancolombia, the largest bank in Colombia, has made its entry into the cryptocurrency industry by launching a crypto exchange called Wenia. This new platform aims to attract 60,000 users within its first year and compete with major players like Binance and Bitso.
In addition to the crypto exchange, Bancolombia has also introduced its own stablecoin called “COPW,” which is tied to the value of the Colombian peso. The stablecoin will serve as a means for users to join the exchange. Apart from COPW, Wenia will allow trading of popular cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), and Polygon (MATIC). However, only Colombian nationals residing in the country will have access to the platform.
The banking giant’s goal is to tap into the growing popularity of cryptocurrencies in Colombia and cater to both novice and experienced traders through its platform. According to the 2023 Global Crypto Adoption Index by Chainalysis, Colombia ranks third among Latin American countries in terms of crypto adoption.
In an interview with Forbes, Juan Carlos Mora, the president of Bancolombia, highlighted that the bank has been working for nearly a decade to develop this crypto platform, aiming to facilitate the adoption and utilization of digital assets and blockchain technology.
However, Bancolombia’s official announcement also emphasizes the risks associated with trading digital assets. The bank clarifies that the listed cryptocurrencies are not securities and are not backed by any government. They are also not covered by deposit insurance and come with inherent risks such as volatility and potential price losses. Bancolombia emphasizes that none of its entities will be exposed to digital assets.
According to a lawyer’s post on LinkedIn, Wenia is an independent entity registered outside of Colombia in Bermuda. Therefore, any disputes or claims will need to be directed towards Wenia, rather than Bancolombia, and will be resolved in the courts of Bermuda.
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