Chilean Digital Currency Exchanges Seek Clear Regulations After Banks Shut Down Accounts

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Cryptocurrency Exchanges in Chile Seek Clear Regulation After Banks Shutters Accounts

Two Chilean digital currency exchanges, BUDA and Crypto MKT, recently saw various banks in the nation close down their accounts for dealing with digital currency. In reply, the organization chose to call on the Nation’s banking association, Asociación de Bancos e Instituciones Financeras (ABIF), to clarify its position on the digital currency industry.

As per local news outlet PULSO, the two digital currency exchanges issued a public proclamation in which they request the regulator to give a clear position, as the bank close down their accounts while claiming they had the direction to “not open an account for anyone that has relation to cryptocurrencies.” 

The announcement further claims the financial institutions lack the insight of how digital currency operates and questions why their accounts were close down.

The statement says:

“The lack of knowledge and regulatory clarity has given rise to the fact that some banks, out of fear, misinformation or perhaps by strategy, are refusing to provide their services to anyone who has any relationship with any digital asset.”

BUDA and Crypto MKT further noted that it should be clear whether digital currency-related companies should have an approach to banking services, or if the banks are “determined to prevent the existence” of these organizations. Also, two exchanges asked both authorities and the public to focus on the issue.

Right at the top, the announcement notably claims that industry is being “assassinated” before being examined. It notes both BUDA and Crypto MKT play by the guidelines, as they have created supported platforms for their clients, pay VAT, and have open channels to collaborate with local officials while following standard anti-money laundering (AML) and anti-terrorist funding practices.

ABIF rejects responsibility

As per local publication Publimetro, ABIF has reacted to the two digital currency exchanges, asserting it isn’t responsible resolving the issue. The regulator expressed that this “is a matter that must be addressed and resolved in the context of the individual relationship of each bank with its customers.”

ABIF further asserted declaration such as those issued by the digital currency exchanges are “especially serious,” as they can see people misunderstand the association’s role Martin Jofré, Crypto MKT’s co-founder, claims “the association can do a lot,” as what ‘s at stake is the part banks took in determining what economic activities can and can’t be done in Chile.

BUDA’s general manager, Pablo Chávez, contended the move sees banks choose not to work with organizations related to digital currencies “in an arbitrary manner and without a solid foundation.” Moreover, he revealed that “none of the banks in question has approached with doubts about cryptocurrencies.”

Nishanth Shetty

Nishanth Shetty is a technical writer, author and a crypto-advisor working at Cryptofame. Based in the city of dreams, Mumbai, on the west coast of India. He holds a bachelors degrees from Mangalore University. Nishanth has a myriad experience of technical writings for tech brands. His interests include technology, travel, and food.