Bitcoin is difficult in South America: Columbia’s first bitcoin exchange line two weeks after being forced to stop government
Columbia’s first bitcoin exchange Colbitex two weeks ago, just on the line, and now have to suspend business for rectification, apparently due to legal problems in their digital currency.
According to cryptocurrencies news website DiarioBitcoin reported that the business is only temporary, the legal status of Colbitex and the government negotiated exchange, in order to determine whether Colbitex can continue to operate.
At present, the Colbitex website is offline, the user can send cash request. In addition, Columbia’s financial regulator SuperintendenciaFinancieradeColombia (SFC) only allows users to cash pesos (Columbia Fiat).
Because bitcoin is not a “real money”, so it cannot have the exchange rate. Colbitex pointed out that the Columbia government has never explicitly prohibit the use of bitcoin, which was in May this year, the joint central bank warned people about the risks of using digital currency.
Since the beginning of 2014, the world’s central banks and financial regulators have issued similar warnings.
Bitcoin rooted in Columbia
Colbitex is very popular in the local. In August 6th, the transaction amount is as high as more than 100 million pesos (about $35 thousand).
Since July 25th, Colbitex has been in trial operation mode. Colbitex co-founder Roman pola? (RomanParra) earlier said in an interview, the exchange licenses complete, strictly abide by the tax law, commercial law and other relevant laws, the trial operation stage is to let customers know in advance bitcoin transactions. Colbitex only provide bitcoin and Peso trading services into a single volume and online Wallet Storage are strictly limited.
At the same time, P2P bitcoin exchange LocalBitcoins data show that bitcoin transactions in Columbia gradually rise, domestic demand is on the rise.
Bitcoin is difficult in South America
Parra also mentioned, compared with neighbouring Argentina and Venezuela, bitcoin is very slow pace of development in Columbia. But he was looking forward to Colbitex can develop other markets, not just traded peso.
A news report in March this year showed that two men were arrested for bitcoin mining in Venezuela, but due to the complex tax problems caused by mining, instead of mining itself.
Venezuela has at least one online bitcoin exchange Surbitcoin is still in operation. But last month, Surbitcoin also closed for a period of time, because the local bank froze its currency account.