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Shuttered Accounts As Banking Blockades for Chilean Cryptocurrency Exchanges

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Three Chilean cryptocurrency exchanges, BUDA, Crypto MKT, and Orionx, are about to lose banking services as BancoEstado, the last bank supporting cryptocurrency exchanges in Chile, has announced it’s closing the trading platforms’ accounts.

According to local news outlet El Mercurio, the financial institution decided to, for now, “not operate with companies that are dedicated to the issuance or creation, brokerage, intermediation or serve as a platform for the so-called cryptocurrencies.”

While El Mercurio reports BancoEstado decided to close the accounts of all three cryptocurrency exchanges, it has reportedly only sent crypto exchange Orionx a notice so far, informing it of its move.

This is a notable move, as CCN recently reported that Chilean cryptocurrency exchanges BUDA and Crypto MKT saw banks shutter their accounts. In response, the exchanges issued a public statement calling on the country’s banking association, ABIF, to clarify its stance on the cryptocurrency industry.

At the time, the exchanges noted one of the banks revealed it had instructions to “not open an account for anyone that has relation to cryptocurrencies.” BancoEstado was the only financial institution still working with the exchanges.

Cryptocurrency exchanges react

Martin Jofré, Crypto MKT’s co-founder, stated that if BancoEstado turns its back on the caompy, the exchange would be left with no banking. If it comes to that, he emphasized, the company would return users their funds.

Orionx, knowing BancoEstado is shuttering its account, also ensured users their funds are “fully backed and there is no risk of insolvency.” Reacting to the financial institution’s move, Orionx stated it doesn’t agree with it, and believes “it is an incorrect and anti-competitive measure.”

In their joint statement, BUDA and Crypto MKT both argued they pay value-added tax (VAT), are registered with the Chilean Financial Analysis Unit (UAF), and follow anti-money laundering and anti-terrorist financing practices, while providing its users a safe platform.

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