Chilean banks close accounts for two exchanges of cryptomoney

Published by Belu.ga el 03 Apr 2018 in criptoccurencies


Chilean banks close accounts for two exchanges of cryptomoney

Two Chilean cryptocoins exchanges, Buda.com and CriytoMKT.com, met on Monday with their bank accounts closed at various banks. The measure comes at a time when the country's cryptographic platforms are seeking to open bank accounts to enable their customers to convert their digital currencies into fiat money. They have reacted by calling on the Association of Banks to clarify their position on the cryptographic sector in the South American country.

One bank summoned Buda.com to inform them that the institution had decided to close one of their bank accounts at the bank. On the same day, another bank did the same with CryptoMKT.com to make it aware of a similar measure.

Both exchanges have made known their disagreement with the closure of their accounts, and in a joint statement they reported that a third bank told them that they were following orders not to open accounts to anyone connected with cryptocurrencies', without specifying the origin of the order.

Buda.com and CryptoMKT.com want to draw attention to the legal uncertainty surrounding the activity of the cryptographic sector in the South American country, which they consider beneficial for the inclusion and improvement of the local financial world. To this end, they ask the Chilean Association of Banks and Financial Institutions (ABIF) for a clear position on the matter.

This will probably affect banks, as the lack of clear rules prevents them from adequately serving the Chilean FinTech sector. This means that they have to be cautious in providing their services to users of the digital coin ecosystem, or anyone else who has anything to do with it.

The statement issued by Buda.com and CryptoMKT.com, shows the urgency of adopting a transparent regulatory framework, since, according to the statements of both exchangers, so far in the southern country "regulation is in the hands of a few, who act as de facto regulators and are choosing to ban" exchanges or prevent access to the banking system.

As an exchanger, Buda.com bases its services on transactions with Bitcoin, while CryptoMKT.com mainly deals with trading with Ethereum. Both companies have asked ABIF to let them know if they can count on the services of banks for their clients.

The exchanges act according to the rules

Exchanges affected by the decision of the banks ensure that they act in accordance with legal regulations, with detailed information on all their activities for the authorities, complying with national and international standards in relation to money laundering and financing of terrorism.

The companies ensure that the public receives all the information on the characteristics, advantages and risks of transactions with these types of assets, which can be accessed through their state-of-the-art platforms for the protection of their users.

Chile is a pioneer in technological innovation in Latin America, and the limitations imposed by banks could mark the end of cryptographic activity in the country, warn the companies.

Comment this post


You must be registered to comment the post

Comments