Cryptocurrency exchanges in Chile are up in arms after being denied services by banks. The exchanges have called on the banking association of the country to issue a statement on their stand about cryptocurrencies. The exchanges are fighting to be allowed to open accounts to serve people who are now preferring digital currencies to fiat money.
Two exchanges in particular BUDA and Crypto MKT have criticized the closure of their accounts. According to officials from the two exchanges, the banks said they had been instructed not to open accounts related to cryptocurrency.
The two exchanges have now joined hands to fight for their rights and have issued a joint statement stating that: “Due to the lack of knowledge and clarity some banks out of fear, lack of information or even poor strategy are refusing are not offering services to people who are in the cryptocurrency market.” The two exchanges also stated that the regulations were in the hands of a few who are behaving like de facto regulators.
Crypto MKT and BUDA asked the Banking association to make its position transparent. By this, they are supped to state clearly whether companies associated with digital currencies were allowed to access banking services. More to that they are also supposed to state whether they are ready to support the young crypto industry. The two companies also asked the public to pay more attention to the growing sector before it’s too late.
To prove that they are not posing any legal risk the exchanges stated that they had incorporated the latest technology in order to protect their customers from cyber-crime and even went ahead to open doors for collaboration with the country’s authorities. They also went ahead to say that they were educating the public on the advantages and disadvantages of trading in digital currencies.
The two exchanges also proved that they pay taxes and are registered with all the relevant authorities in Chile. More to that they also follow the standard prevention of money laundering and also look at the anti-terrorism financing guidelines.
The fight between digital currencies and banks is not only in Chile but all over the world. Almost in every country, there have been incidences where banks have tries to deny exchanges banking services. Recently a similar case was in Israel where the Supreme Court of Israel had to come in to issue an injunction stopping the county’s Bank called Leumi from halting account activities of an exchange company called Bits of Gold.