Banco Estado is the only public bank of Chile. It is recognised as the safest bank in Latin America. Its recent report reflects upon a majority of solutions making in Latin America. Their solve on closing cryptocurrency exchange accounts reveals the trouble brewing for cryptocurrency around South America. Two other large banks, Itau Corpbanca and Bank of Nova Scotia have already restricted the accounts of the three crypto exchanges.
Banco Estado has decided not to interact with companies that issue or generate cryptocurrencies, that provide brokerage and intermediary services with cryptocurrencies, and do not serve as a platform for crypto exchange transactions.
Banco del Estado de Chile, public bank, Chile
Nevertheless, Buda, Orionx, and Cryptomkt are appealing against this resolution.
We are going to sue the TDLC to all the banks that denied or hindered the opening of current accounts to these companies and to those who, having opened them, closed them. Here are the majority of the banks in the square.
Mario Bravo, lawyer, helping the crypto exchanges, Chile
Latin Crypto exchanges are picking up in demand of trading. Buda, for example, facilitates approximately USD 1 million worth of cryptocurrency every day. The decision of closing cryptocurrency accounts will end the industry, according to the point of view of Buda’s co-founder and CEO.
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.
Guillermo Torrealba, Buda’s co-founder and CEO, Chile
Orionx is also going against this decision by continuing suggesting trades for crypto to crypto pairings. On April 5th, Chile’s Financial Stability Council showed negative mood of cryptocurrency. The restrictions on cryptocurrency could have been at the request of the Chilean government.