Chilean Cryptocurrency Services Have Lost Their Support From Banks

Cryptocurrencies, Exchanges, News

Banco Estado, the only Chilean bank that was providing support to the country’s cryptocurrency exchanges, has severed ties with the industry by no longer offering its services. More specifically, it will no longer be working with the exchanges CryptoMKT, Buda, and Orionx. All three exchanges were informed that they had just ten days to complete and end their operations with Banco Estado.

The bank made this clear in a press statement: ‘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.’

Orionx, a Chilean Bitcoin exchange, criticised the decision calling it ‘incorrect and anti-competitive.’ The exchange then further comforted their users by saying that their money is safe and that ‘there is no risk of insolvency.’

This is important news for the people of Chile as Banco Estado is the only public bank in the country. It was also the last bank that allowed cryptocurrency transactions. Its action to revoke their services shows how they judge the cryptocurrency market as a whole. El Mercurio reports that both Buda and CryptoMKT have requested Banco Estado to explicitly detail their decisions for denying access. With few other options left, Pablo Chavez, the head of Buda has said to Tecnologia.Press that he is considering opening his own online bank so he can facilitate his and his clients’ transactions.

The three exchanges have been struggling to find support from banks for the last few months— both Itaú Unibanco Holding S.A. of Brazil and Nova Scotia also closed their accounts not long ago. Banco Estado’s decision to close accounts comes as a shock to the industry since, in June, the governor of the bank expressed his appreciation for blockchain technology during a speech. As of right now, there is no definitive word on what will happen to Buda, Orionx, and CryptoMKT, but there is still a possibility that Banco Estado will reverse their position, although it seems unlikely.

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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