Chilean Crypto Exchanges Say Bank Accounts Closed For ‘vague Regulations’

Two of the largest cryptocurrency exchanges in Chile have asked the Chilean Association of Banks (ABIF) for clear regulations after the two had their corporate accounts closed by several banks.

The exchanges said the closure of the accounts was caused by the vague regulations that are governing the global cryptocurrency industry. They have asked the ABIF to clarify their stand on cryptocurrencies and cryptocurrency trading.

BUDA offers Bitcoin exchange services, while CRYPTOMKT primarily deals in Ethereum.

In a joint statement, cryptocurrency exchanges BUDA and CRYPTOMKT said, “Due to the lack of knowledge and clarity some banks, out of fear, lack of information, or even poor strategy, are refusing or not offering services to people who are in the cryptocurrency market.”

The public statement dubbed as “Chile Can Make A Fool Of Itself Or Stand Out Worldwide” claimed that banks have been shutting down accounts of crypto exchanges on instructions “not open an account for anyone [related] to cryptocurrencies.”

Meanwhile, BUDA and CRYPTOMKT stated that their crypto platforms are also still operating as they have another active bank account.

ABIF has already extended its regulatory mandate to cover the cryptocurrency industry in order to prevent loopholes in the emerging technology. However, the banking industry is still apprehensive in dealing with anything to do with cryptocurrencies for want of clear regulatory guidelines.

ABIF had reportedly responded to the statements by the two exchanges, saying it is not responsible for resolving the problem between banks and crypto exchanges. It added that the problem must be addressed and resolved in the context of the individual relationship of each bank with its customers.

by RTTNews Staff Writer

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