How Chilean Banks Wreck Crypto Industry

April 16, 2018

Chilean trading platforms Buda, Orionx and CryptoMarket are seeking ways to continue functioning after Itau Corpbanca, Bank of Nova Scotia and state-owned Banco del Estado de Chile closed their accounts last month without giving any reason. The exchanges have gone to the appeal court but their accounts are still blocked.

Finding trusted banking partner is a tall order for cryptocurrency companies all over the world but financial institutions in Chile are likely to introduce a total ban over crypto industry. It is still unclear whether the government is responsible for the decision, but crypto users are already worried about South American nations moving towards the policy adopted by China and South Korea that already prohibited crypto trading and ICO.

“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», co-founder and CEO at Buda Guillermo Torrealba said.

Itau Corpbanca's CEO Milton Maluhy would claim on March 27, the bank supports start-ups and new technologies, but cryptocurrency is the industry to be in need of more regulation so the bank follows internal rules when closing single accounts. Chilean Bank Association has withheld comments.

Local media reported, the orders for closing accounts came from the government. Chile’s Financial Stability Council together with members of Finance Ministry, central bank and securities authorities have warned the users against the cryptocurrency-related risks.

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