Bitso published its 8 regulatory principles for cryptocurrencies in Latin America

At a time when the industry of cryptocurrencies is being called into question based on both the crypto winter and the collapse of prominent cryptocurrency exchanges. cryptocurrencies, Bitso makes public what, since its foundation more than nine years ago, has been its banner to promote and operate its crypto-based financial services: the non-negotiable protection of the security and risk management of its clients through ethics and transparency.

Beyond the existence of a regulatory framework or the process in which it is found, Bitso synthesizes its commitment to operate transparently, safely and for the benefit of its community in eight principles. Under these guiding principles, the company seeks to promote the adoption of cryptocurrencies as a solution to the gaps that traditional financial systems have, such as their high costs to move money from one country to another, rapid devaluation or transactional deficiencies.

“Our experience as one of the few end-to-end regulated platforms in the region has helped us identify the best practices that fit the financial reality of Latin America.. This guide reflects the essence of Bitso to revolutionize financial services with crypto technology, but always recognizing that, in order to achieve its proliferation and adoption, security, responsibility and risk mitigation must be guaranteed”, he pointed out. Felipe VallejoGlobal Director of Regulatory and Corporate Affairs at Bitso.

“These principles govern and are the foundation of our operation. It is our duty to share them so that more companies follow this self-regulatory path and adopt measures that help build the future of finance in a secure and transparent way for the entire community, ”he added.

Bitso has played a key role in the regulatory processes of countries such as Brazil, Colombia and Mexico regarding cryptocurrencies and is also the only crypto platform in Latin America with a license from Distributed Ledger Technology (DLT) granted by the GFSC.

Bitso’s eight regulatory principles for cryptocurrencies:

1. Defend the interests of customers above all: Consumer protection and rights as the guiding principle of the business, placing the interests of customers first.

2. Safe custody of funds: Support and promotion of public policies that ensure the best custody practices, such as the segregation of funds, multi-signature wallets and constant audits, as well as the irrefutable commitment to never use client funds without their explicit permission .

3. A truly inclusive financial system: Encourage regulations, policies, and practices that put the interests of those who have been neglected by the traditional financial system first.

4. Technological neutrality: Appeal to the right of users to use any technology to meet their needs, without making value judgments about said technology.

5. Anti-money laundering (AML) policies that prevent crimes: By nature, the transparency and traceability of the blockchain allow mitigating and preventing risks regarding illegal activities. The logical application of AML and customer knowledge (KYC) policies, which identify risk areas and which are not restrictive or reduce the offer of services to vulnerable groups, allow a correct evaluation of activities and promote an inclusive financial system for all.

6. Education as the key to informed risk taking: Financial education and public policies that give way to clear, fair and equal communication, as well as the appropriate disclosure of risks for better financial decision making.

7. Borderless access to financial services: Encourage regulations that protect and promote a borderless financial system through crypto. Transferring money between two countries carries an average cost of more than 6% of the total value of the transaction. On the contrary, with crypto technology these costs could be reduced by up to 80%.

8. Corporate governance agreements that promote ethical practices in companies: The implementation of controls and internal processes that defend the integrity of operations and commit the board of companies to pursue the best interests of customers is advocated.

With these principles, the company with operations in Argentina, Brazil, Colombia and Mexico and more than 6 million clients seeks, based on its experience, to identify and promote the best practices that apply to the financial reality of Latin America.