News

Chilean Crypto Exchanges Move to Court to Challenge Closure of Bank Accounts

0 Comments

Chilean cryptocurrency exchanges have moved to court to challenge the decision by banks to deny them services. As we reported recently, Banco del Estado de Chile was the last bank to offer services to cryptocurrency exchanges. The state-owned bank has since pulled the plug on the services putting the future of the operators in uncertainty.

Corpbanca, Bank of Nova Scoti also closed accounts belonging to cryptocurrency exchanges in what appeared to be a coordinated effort.

Crypto MKT

Crypto Market, Buda and Orionx are some of the largest exchanges affected by the move.

“They’re killing an entire industry. It won’t be possible to buy and sell crypto in a safe business in Chile. We’ll have to go back five years and trade in person. It seems very arbitrary,” Buda’s CEO Guillermo Torrealba is quoted by Bloomberg as saying. Buda had a 24-hour volume of $1 million before its accounts were closed, reports indicate.

Torrealba insists that the exchange abides by the same standards set for financial institutions including know-your-customer policies.

An association representing cryptocurrency exchanges has previously written to the association of banks (ABIF) seeking clarification in the wake of the closures. ABIF, however, wrote back saying it did not have a role in individual relationships between banks and their clients.

Government Warning

Two weeks ago, Chile’s Financial Stability Council issued a warning against cryptocurrencies. The body brings together representatives from the ministry of finance, central bank, pension fund regulator and securities regulators.

Thailand

It is likely the shut down stems from a directive from the government according to local media reports.

The appeals court has already agreed to hear the case but the accounts will remain closed in the meantime.

The closure riled the small cryptocurrency community in Chile who took to social media to express their frustration.

Under the hashtag  #ChileQuiereCryptos or Chile Wants Cypto, users branded the move to stifle cryptocurrencies as retrogressive. They now want their ability to trade in bitcoin and other cryptocurrencies restored.

Leave a Reply

avatar
  Subscribe  
Notify of
close-link

Risk Warning: Investing in digital currencies, stocks, shares and other securities, commodities, currencies and other derivative investment products (e.g. contracts for difference (“CFDs”) is speculative and carries a high level of risk. Each investment is unique and involves unique risks.

CFDs and other derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how an investment works and whether you can afford to take the high risk of losing your money.

Cryptocurrencies can fluctuate widely in prices and are, therefore, not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Past performance does not guarantee future results. Any trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Your capital is at risk.

When trading in stocks your capital is at risk.

Past performance is not an indication of future results. Trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Prices may go down as well as up, prices can fluctuate widely, you may be exposed to currency exchange rate fluctuations and you may lose all of or more than the amount you invest. Investing is not suitable for everyone; ensure that you have fully understood the risks and legalities involved. If you are unsure, seek independent financial, legal, tax and/or accounting advice. This website does not provide investment, financial, legal, tax or accounting advice. Some links are affiliate links. For more information please read our full risk warning and disclaimer.