Chilean Court Orders Banks to Re-Open Digital Currency Exchange Accounts

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Chilean Anti-Monopoly Court Directs Banks to Re-Open Cryptocurrency Exchange Accounts

Chile’s anti-monopoly court orders lately ordered two major Chilean banks to re-open the accounts of one of the nation’s biggest digital currency exchange, Buda.

According to a report, the nation’s court-ordered that state bank Banco del Estado de Chile and Itau Corpbanca should re-open the digital currency exchange’s account, probably to check what seemed like a blanket ban on digital currencies in the nation.

Buda’s lawsuit continues against 10 Chilean Bank, including the two directed to re-open its accounts. The Bank prosecuted the banks after its accounts were shut in a move it named “arbitrary” and “unjustified.”

As per a report, Chile’s digital currency exchanges Buda, Crypto MKT, and Orionx saw the nation’s bank close down their bank accounts with no proper clarification prior this month. At the time, Banco Estado revealed it chose “not operate with companies that are dedicated to the issuance or creation, brokerage, intermediation or serve as a platform for the so-called cryptocurrencies.”

Some think the blanket ban is emanating from the Chilean Government, as the nation’s Financial Stability Council, an organization with representatives from nation’s central bank, the Finance Ministry, and the securities, banks, and pension funds regulator issued a caution on digital currencies on 5th April soon before banks began closing down exchanges accounts.

In response, the digital currencies exchanges chose to take the case to an appeal court, a move that, considering Buda’s success into account, may pay off for the exchanges. As of now, Crypto MKT and Orionx probably still have their accounts closed.

Reports have proposed Chile’s financial institutions are apparently implementing an embargo on the crypto industry.

Buda’s chief executive officer, Guillermo Torrealba, was clear on his position:

“They’re killing an entire industry. It won’t be feasible to buy and sell cryptocurrency in a safe business in Chile. We’ll have to go back five years and trade in person. It seems very arbitrary.”

On 27 March, Itau Corpbanca’s chief executive Milton Maluhy asserted the bank encourages startups and new technologies meanwhile arguing digital currencies need more regulation. When reached out to, other financial institutions didn’t respond.

As covered, Crypto MKT unveiled that it was left without banking after Banco Estado closed its account. Orionx, on the other hand, claimed clients funds were “fully backed” and that there was “no risk of insolvency.”

Suzat Fernandes

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