Chilean Courts Re-Open Bank Accounts for Exchanges

Exchanges, News

The cryptocurrency exchange, Buda, has persuaded Chile’s anti-monopoly courts to order the re-opening of the platform’s accounts with two national banks. This comes after the Chilean banks closed their doors to all cryptocurrency exchanges within the country. Buda will now be able to seek financial services from both Banco Estado and Itau Corpbanca.

Buda chose to sue the banks after several of them decided to halt the accounts since they believed that their reasoning was ‘arbitrary’ and ‘unjustified.’ Chile’s Banco Estado eventually became the only bank supporting cryptocurrency, but they also closed accounts too— after which, they informed Buda and others that they only had ten days to complete their business operations before the closure was enforced.

The main reason the courts are re-opening the bank accounts is that having every bank revoke their services essentially places a ban on cryptocurrency when, in fact, Chile is attempting to be open to the new technology. In an interview, Guillermo Torrealba, CEO of Buda stated that Chile is revealing itself to be an ‘extremely conservative country, even though [it] make[s] huge efforts for the world to see [it] as liberal.’ He further added ‘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’.

Buda is not the only exchange that has been seeking a decision by the courts— Orionx and CryptoMarket have also been hoping for a change so that they can continue facilitating trades within the country.

Milton Maluhv, CEO of Itau Corpbanca (one of the banks being asked by the courts to re-open accounts) stated that their initial reason for closing them was because cryptocurrency is not readily available in the world yet, which is mainly due to a lack of regulations.

Kai is a cryptocurrency copywriter and professional trader. He can often be found investigating various cryptocurrencies, whitepapers, and blockchain technologies. Kai has been a professional writer for 5+ years, and has invested in 50+ different coins and tokens. He also currently studies Law and Philosophy at university.

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