Chilean Cryptocurrency Exchanges Sue Bank over Account Suspension

There is an ongoing battle between some Chilean cryptocurrency exchanges and Chilean public bank, Banco del Estado de Chile. The riff was caused by Banco del Estado de Chile decision to suspend the account of three crypto exchanges BUDA, Orionx , and CryptoMarket (CryptoMKT). As a result, the exchanges have applied to an appeals court to confront the decision of the  bank to close down their accounts.

The exchanges received the blow of the suspension of their accounts from Banco del Estado de Chile shortly after they received an account termination from the Bank of Nova Scotia and Itau Unibanco Holding S.A of Brazil. The decision of these banks is greatly affecting the crypto industry in Chile according to  BUDA’s co-founder and CEO Guillermo Torrealba who commented  that the banks’ decision to close accounts is “killing the entire industry.”

The banks move has been criticised by the  Chilean cryptocurrency community who launched the tag on Twitter #ChileQuiereCryptos (Chile Wants Crypto) to retain citizens ability to trade and transact with cryptocurrencies as well as support the exchanges.  Chile already has locally launched coins Luka and Chaucha and the cryptocurrency community is displeased that Chile is taking a backward step when it came to cryptocurrency.

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The exchanges would be suing the banks for denying them access to opening current accounts of their clients. Mario Bravo, the exchanges’ lawyer, states

“We are going to sue the TDLC to all the banks that denied or hindered the opening of current accounts to these companies and to those who, having opened them, closed them. Here are the majority of the banks in the square.”

He also considers the banks actions as “an abusive exploitation of a situation of economic dependence.”

Buda had been able to facilitate about $1 million USD worth of cryptocurrency trades daily before this account ban, but BUDA’s co-founder and CEO Guillermo Torrealba Is hopeful about the situation as he states,  

“Hopefully the appeals court will see we’re right.”

Despite the unpleasant situation, the Chilean exchange, Orionx had offered to return all funds held in fiat currency to investors, the exchange had also indicated that it will continue to offer trading for crypto-to-crypto transactions. We will be keeping our fingers crossed as we wait for the ruling of the court as this might likely determine Chile’s crypto exchanges fate.

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