Chilean Exchanges Promote Better Cryptocurrency Regulations After Banks Denied Services
Two Chilean exchanges, BUDA and Crypto MKT, which operate both in Chile and in other Latin American countries, recently requested the Association of Banks of Chile (ABIF) to clarify their position on cryptocurrencies and their trade, since the corporate accounts of the signatures were closed by several banks in the southern country.
In a public statement, called "Chile can make a fool of itself or stand out all over the world," BUDA and Crypto MKT asked ABIF for a transparent position on cryptocurrencies, claiming that banks have been closing crypto exchange accounts with instructions from "Do not open" an account for anyone related to cryptoactives.
In the statement, both firms accused financial institutions of "a lack of knowledge" about how technology works. The joint declaration states:
Due to the lack of knowledge and clarity, some banks, out of fear, lack of information, or even a poor strategy, refuse or do not offer services to people who are in the cryptocurrency market.
Recently, the ABIF responded to the statement stating that it is not responsible for resolving the problem between the banks and the cryptocurrency exchanges, stating that it is an "exclusive competence of each institution", and that the problem "must be addressed and resolved in the context of the individual relationship of each bank with its clients ".
On the other hand, the general manager of Scotiabank Chile, Francisco Sardón, said that the actions of the banks were not oriented towards cryptocurrency companies and reflected a broader banking policy. According to Sardón, if an entity with an account does not provide an explanation of the origin of its income, or if the explanation is not clear or does not meet the expectations of the bank's compliance policies, the bank may choose to close that account.
However, BUDA and Crypto MKT pointed out that the platforms are still working, since they have another bank account that is still active. The exchanges indicate that they are registered and comply with the Financial Analysis Unit (UAF) of Chile and the Financial Action Group (FATF), in addition to complying with the standards against money laundering and terrorist financing. It remains to be seen if the ABIF decides on this and how it would proceed.