Chile: banks closing accounts of cryptocurrency exchanges

Chile: banks closing accounts of cryptocurrency exchanges

Two Chilean cryptocurrency exchanges BUDA and Crypto MKT found that the number of banks in the country closed their accounts. In this regard, the exchange contacted the Association of banks and financial institutions of Chile (ABIF) with a request to clarify its stance towards the cryptocurrency.

According to local news channel PULSO, BUDA and Crypto MKT released an official statement, which asked the regulator to clearly outline its position in relation to cryptocurrencies, as their Bank accounts were frozen without any warning. The representative of the Crypto MKT told the media that the banks claim that was instructed “not to open accounts for companies whose activities are related to digital currencies”.

The statement of the exchange please answer the question why their Bank accounts were closed and claim that financial institutions do not have sufficient knowledge about cryptocurrencies:

“The lack of knowledge and clarity of regulations spawned by the fact that some banks, driven by fear, misinformation, or perhaps its own strategy, refuse to provide their services to anyone who has any relation to any kind of digital assets”.

BUDA and Crypto MKT noted that it is necessary to determine whether the company associated with bitcoin, have access to banking services or banks “are going to stop the existence” of such companies. In addition, the exchange called upon the authorities and the public to pay attention to this issue until it is too late.

The statement asserts that the industry “killed” before she understood. Stock exchanges are calling for fair regulation and argue that play by the rules, as they have developed a secure platform for its users, based on the latest technologies, pay taxes, and opened channels for cooperation with local authorities, while acting in full compliance with the standards for combating money laundering and the financing of terrorism.

According to local newspaper Publimetro, ABIF said he was not responsible for the solution of this problem. The regulator stressed that “the issue needs to be addressed in the context of the individual relationship of each Bank with its customers”.

ABIF added that such statements are “particularly serious” because people may incorrectly assess the role of the Association. Martin Jofre, co-founder of the exchange Crypto MKT, argues that “the banking Association of the country has a lot to do”, because it has impact on banks, which in turn play a role in decisions about which economic transactions may or may not be held in Chile.

General Manager BUDA Pablo Chavez argues that the application of the regulator means that the banks have decided to cease cooperation with the companies associated with cryptocurrencies, “on his own initiative, without any reason”.

Today Chile is in regulatory uncertainty on the background of recent developments in the cryptocurrency market. That is why exist in Chile stock exchange are currently in limbo.

Let's Disqus