Chilean banks have closed the accounts of cryptocurrency exchanges

Chilean banks Corpbanca Itau, Bank of Nova Scotia and the public Banco del Estado de Chile without explanation, closed the account a local cryptocurrency exchanges BUDA, Orionx and CryptoMarket. The exchange appealed to the court of appeal, which agreed to hear the case.

One of the priorities for cryptocurrency exchanges is the choice of a partner Bank for transactions with Fiat currencies. However, apparently, the financial institutions of Chile are on the path of China and South Korea, where it was banned cryptocurrency trade and ICO (initial placement of tokens).

«They are killing an entire industry,» said Guillermo Torrealba (Guillermo Torrealba), co-founder and CEO of cryptocurrency exchanges BUDA. «It is impossible to buy and sell cryptocurrency in a safe business space in Chile. Such actions return us five years ago, when trade was conducted in a personal meeting, without the participation of cryptocurrency exchanges.

Cryptocurrency market is Chile, a small but fast growing. Before banks were blocked accounts of cryptocurrency exchanges BUDA, its turnover was about one million dollars a day. Exchange adhere to the same rules of Fiat money that in the financial world. Ie the rules were followed KYC (know your customer) and accepted only Bank transfer – no cash.

On March 27 the head of Itau Corpbanca Malachi Milton (Milton Maluhy) explained that the Bank has supported startups and new technologies, but the cryptocurrency industry needs to be regulated, and the Bank follows internal regulations, on the basis of which the decision was made to close accounts.

The Chilean banking Association declined to comment. Same is with Scotiabank and BancoEstado.

In the local media discussed the version that the initiative of the closure of Bank accounts belonging to cryptocurrency exchanges, came from the government.

In his statement made on 5 April, the financial stability Board Chile, which was attended by representatives of the Ministry of Finance, Central Bank and securities and representatives from private banks and pension funds, warned about the risks associated with investing in cryptocurrency.

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