Bancolombia Group Ventures into Crypto Space with Wenia Exchange and COPW Stablecoin
Summary:
Leading Colombian bank, Bancolombia Group, has launched its own cryptocurrency exchange, Wenia. The group aims to attract 60,000 users in its first year, directly competing with exchanges like Binance and Bitso. Bancolombia also released a stablecoin pegged to the Colombian peso, COPW, amongst other tradable cryptocurrencies such as BTC, ETH, USDC, and MATIC. The platform is exclusively available to Colombian nationals living in the country. Cautioning about the risks involved, Bancolombia clarified that the listed digital assets are not securities, government-backed, or insured against deposit risks. Additionally, any disputes will be handled by Bermudian courts, as Wenia is registered there.
Bancolombia Group, the leading bank in Colombia, has made a decisive move into the cryptocurrency market with the launch of its own exchange, Wenia. Designed to attract more than 60,000 users in the first 12 months of operation, Wenia is poised to rival established exchanges like Binance and Bitso. The banking powerhouse has also introduced a peso-anchored stablecoin, COPW, as part of the customer onboarding process for the exchange. COPW, maintained on a 1:1 ratio with the Colombian peso, will exist alongside other tradable cryptocurrencies on Weina, including Bitcoin (BTC), Ether (ETH), USD Coin (USDC), and Polygon (MATIC). However, only Colombian citizens who are residents in the country will be able to use Weina. Leveraging Colombia's high rate of cryptocurrency usage - the nation is the third-largest adopter of digital assets in Latin America per the 2023 Global Crypto Adoption Index - Bancolombia aims to make its mark in the cryptocurrency market by targeting both new and experienced traders. In a discussion with Forbes, Bancolombia Group's president, Juan Carlos Mora, stated that the development of the cryptocurrency platform, designed to promote the use and adoption of digital assets and blockchain technology, has been a goal for nearly ten years. Meanwhile, Bancolombia Group issued an advisory outlining the risks attached to trading in digital assets, clarifying that the cryptocurrencies on their platform are not securities and are not government-backed. The bank underlined that they are not protected by deposit insurance and carry inherent risks, such as asset price volatility and potential loss. The bank also stated that none of Bancolombia Group's entities would be exposed to digital assets. In a LinkedIn post, a legal professional disclosed that Weina is a standalone entity, registered in Bermuda and subject to the regulations of that jurisdiction. Therefore, any legal disagreements or claims would need to be addressed directly with Wenia before the Bermuda courts, not Bancolombia.
Published At
5/7/2024 2:34:33 PM
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