Buda, Orionx, and Cryptomkt are three Chilean cryptocurrencies which were given notices by the State Bank. The notice was regarding their drop which says that their accounts will be closed by Banco del Estado de Chile. All these three cryptocurrencies were also previously being targetted by Itaú Unibanco Holding S.A. of Brazil and The Bank of Nova Scotia (Scotiabank of Canada).
The Bank of the State of Chile, Banco del Estado de Chile (Banco Estado) ultimately shuts down the accounts of all the three exchanges. El Mercurio, the regional news outlet mentioned in its report that the bank is closing the accounts of the three cryptocurrency exchanges. The decision was done by the back by releasing a statement which says, ‘from now, these three exchanges are not allowed to operate with any of the companies which are dedicated for issuing or creating, brokerage, intermediation or serve as a platform for cryptocurrency calls.
Banco Estado is the only public bank of Chile which alone is responsible for the management of all the financial activities of the government. The traditional focus of the bank revolves around serving small businesses of the country and the unbanked. The bank is also the largest issuer of debit cards of the country. Apart from this, the bank is the third largest bank in the country and routinely serves as the safest bank in Latin America.
The news outlet El Mercurio also stated in its report the cause of this decision. According to the report, Banco Estado was the only and final option for the three exchanges which were later also being destroyed and squeezed by Scotiabank and Itaú after the announcement made by State Bank. The bank gave only the above statement as for the reason for shutting down the accounts of the three exchanges.
However, Pablo Chavez of Buda confronted to the public that the closing of the account might lead him to start a bank of his own even though he was a little unexcited about those prospects. Orionx told the paper that it is not the end of the world and it insisted that the users’ money is fully safe and there is no risk involved regarding the insolvency. Moreover, these cryptocurrency exchanges called on the banking associations of the country to issue a clear position in context to this matter.