This week, one of Colombia’s largest pension providers launched an investment fund that allows Bitcoin exposure for qualifying investors. Meanwhile, a UK crypto industry watchdog reported that banks impede as much as 40% of crypto exchange transactions. Finally, the CEO of a South African libertarian organization recommended Bitcoin as a hedge against devaluing currencies.
To learn more, read on.
Colombia’s second-largest pension scheme launches Bitcoin-linked investment fund
AFP Protección, Colombia’s second-largest pension fund manager, is launching a Bitcoin investment fund. President Juan David Correa revealed that the fund will have limited Bitcoin exposure, will be available only to clients who meet the scheme’s risk criteria, and will then be permitted to allocate a portion of their portfolio to Bitcoin.
Protección becomes Colombia’s second major pension administrator entering digital assets, following Skandia, which began offering Bitcoin exposure in September 2025. Correa explained that the new Bitcoin-linked find does not mean a shift in how the bulk of pension savings are managed, as traditional assets remain core holdings. Rather, it represents an additional diversification option for suitably qualified investors. Founded in 1991, Protección manages approximately $55B for 8.5 million clients. Colombia’s mandatory pension market reached around $144B in November 2025, with nearly half of its assets invested abroad.
Colombia’s tax authority, the National Directorate of Taxes and Customs (DIAN), recently introduced mandatory crypto reporting for service providers, aligning with the Organization for Economic Co-operation and Development’s Crypto-Asset Reporting Framework for international tax information exchange.
Why this matters
This demonstrates the growing adoption of Bitcoin among LATAM’s pension funds. Compliance professionals need to be aware of Colombia’s regulatory framework and digital custody standards. Regulators and law enforcement agencies must monitor crypto integration into traditional institutions to ensure compliance with Colombian tax reporting requirements and financial crime prevention measures.
Read more on MSN.
UK crypto exchange survey finds banks block up to 40% of virtual asset transactions
Major UK banks are blocking approximately 40% of transactions to digital asset exchanges, according to a report by the UK Crypto asset Business Council, a leading virtual asset industry watchdog. The survey covered ten large, centralized exchanges, including Coinbase, Kraken, OKX, Gemini, and Bitpanda. One exchange reported nearly £1 billion $1.2B in declined transactions over the past year from UK bank rejections.
80% of surveyed exchanges reported increased customer payment issues over the past 12 months, with 70% describing the UK banking environment as “more hostile.” Virgin Money, Metro Bank, Starling Bank, TSB, and Chase UK maintain outright blocks on transfers and card payments. Barclays and HSBC UK impose restrictive caps limiting transactions to $3,446 per transfer and $13,784 over thirty days.
The Council raised concerns that these practices may breach the Payment Services Regulations, the Financial Conduct Authority (FCA) Consumer Duty mandate to avoid foreseeable harm to customers, and the Competition Act of 1998, which guards against anti-competitive practices that distort markets.
Turning to the future, the Council’s key request was that the FCA to require banks to establish a framework that recognizes differences across exchanges rather than imposing sector-wide limits. It also recommends creating a forum where banks, regulators, and digital asset firms can share fraud data and best practices. The FCA’s comprehensive crypto asset regime under the Financial Services and Markets Act is expected to commence full authorization in October 2027.
Why this matters
This reveals systemic challenges to banking access affecting legitimate crypto businesses. Compliance professionals have to navigate unclear payment restrictions, and regulators must balance financial crime prevention with anti-competitive concerns while trying to ensure that banks apply proportionate controls rather than blanket restrictions.
Read more on theblock.co.
Free Market Foundation boss says Bitcoin can “state-proof” South Africans’ money
The CEO of the South African liberal economics think tank, the Free Market Foundation, David Ansara, stated on Tuesday, January 27, 2026, that Bitcoin adoption offers South African investors the opportunity to “state-proof” their money against currency devaluation caused by excessive money printing or authoritarian actions.
Internationally, Bitcoin enables cross-border trade, saving, and investment without gatekeepers, bypassing sanctions and third-party interference. Ansara cited increased Bitcoin usage during political upheavals in Iran and Venezuela. In South Africa, Bitcoin could protect investors from potential state failure or government policies undermining economic freedom. Ansara added that while the South African Reserve Bank (SARB) currently enjoys strong independence, there is worldwide pressure, including in the USA, for closer government control of central banks. He referred to cases such as Iran, where recent government action led to a 42% inflation rate and catalyzed protests, and Venezuela, which experienced a 340,000% inflation rate in 2019.
He recommended that South Africans allocate a portion of their portfolio to Bitcoin as a hedge against inflation in the local currency, the Rand, and emphasized the use of hardware wallets to maintain sovereignty over crypto holdings. He also noted a growing trend among retailers and restaurateurs in the Western Cape Province of accepting crypto payments, which is increasing everyday Bitcoin usage.
Meanwhile, corporations are diversifying reserve funds with crypto. Ansara also addressed concerns about power outages, noting that these are localized challenges that don’t erase crypto value.
Why this matters
Bitcoin serves as a capital flight and inflation hedge in emerging markets. As governments impose financial surveillance and capital controls, regulators and law enforcement must understand state-proofing motivations while developing frameworks to address sanctions evasion, tax compliance, and surveillance challenges posed by crypto adoption in jurisdictions with weakening currencies.
Read more on IOL.
