Chile’s anti-monopoly court has overturned an order by two Chilean banks to close the accounts of cryptocurrency exchange Budda.
The announcement comes following appeals by two exchanges, BUDA and CryptoMKT to the Association of Banks and Financial Institutions (ABIF) last month to make clear its position. Their statement referred to a lack of clarity for exchanges operating in the country:
“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.”
The two banks involved, state bank Banco del Estado de Chile and Itau Corpbanca, the fourth largest bank in Chile, have been instructed to reopen Buda’s accounts whilst a lawsuit against the financial institutions continues. Buda sued the banks on the grounds of an “unjustified” closure of their accounts.
Earlier this month other Chilean exchanges filed suits including OrionX and CryptoMKT for what they regard as actions by banks which are, “killing the entire industry.”
Buda CEO Guillermo Torrealba points out the lack of justification for cryptocurrency exchange account closures by Chilean banks, reports Cointelegraph. He argues that the cryptocurrency environment is in danger of becoming worse than other South American countries such as Ecuador and Bolivia:
“There hasn’t been one regulator, legislator or government official saying that cryptocurrencies aren’t legal, it was just the decision of a very powerful sector of the economy: the banking industry.”
He describes Chile as “showing its B side” demonstrating its conservatism whilst attempting to present itself to the world as a liberal nation.
Like many other governments around the world, Chile is trying to come to terms with how to regulate cryptocurrencies. The ABIF is attempting to find the balance between regulation which will promote technology while eliminating scams and the misuse of digital currency. The current lack of guidance for Chilean companies has left an information vacuum.