Despite the generally liberal economic policies of Chile, two cryptocurrency trading platforms claim that they face bank suspensions because of their digital currency holdings.
Buda.com and CryptoMKT
Although it initially appears at odds with the country’s current open stance on cryptocurrencies, the Chilean exchanges, Buda.com and CryptoMKT stand by their allegation. The two platforms detailed the incident in an advertisement in the La Tercera newspaper, citing ”[the local crypto market] is being crushed without studying and understanding its reach”.
The advertisement highlighted the positive abilities cryptocurrencies can have on peoples lives, aiding communities with otherwise limited access into the world of finance. Trading on cryptocurrency platforms does not always require users to have a traditional bank account, which can be difficult for some to acquire.
Buda reported one of its bank accounts would be closed imminently, while CryptoMKT was notified of the possibility that one of its accounts might be closed. One of the banks in question reportedly acted on instructions not to open a new account for anybody dealing in cryptocurrencies.
Chile’s place on the map
While Chile does not acknowledge cryptocurrencies as legal tender, the government has not suggested it plans to restrict the industry from trading. Exchange platforms currently operate under local foreign exchange regulations.
Chile plays a leading role in Latin American blockchain development with many fintech companies operating in the country, producing internationally notable innovations.
The two exchanges described Chile as ”a pioneer in the area of financial technology in Latin America” in the La Tercera advertisement. They expressed their dismay at the decision made by the banks, stating that it moves them further from matching the innovative prosperity of Switzerland and Japan.
As it does not appear the banks were acting on government-issued directions, it is unclear whether other banks plan to also drop clientele with cryptocurrency holdings, or how many will do so.