Chile’s Anti-Monopoly Court Orders Banks To Restore Services To Crypto Exchange Buda

News | April 27, 2018 By:

Chile’s anti-monopoly court has ordered two major Chilean banks to restore account services to cryptocurrency exchange Buda.

Earlier this month, Chile’s state-owned bank Banco del Estado de Chile and Itaú Corpbanca terminated the accounts of crypto exchanges Buda, Crypto MKT, and Orionx without any adequate explanation. At the time, Itau Corpbanca Chief Executive Officer Milton Maluhy said further regulation of cryptocurrencies was needed.

Buda filed legal action to one of the country’s appeals court following the unexpected closure of their bank accounts. Guillermo Torrealba, Buda’s co-founder and CEO, said that the banking system has taken unilateral action in Chile that’s “killing the entire industry.”

According to a Bloomberg report, Buda successfully persuaded the country’s anti-monopoly court to order the re-opening of its accounts at the aforementioned banks. Buda’s lawsuit continues against 10 Chilean banks, including the two ordered to re-open its accounts, citing the unexpected closure as “arbitrary” and “unjustified.”

Last month, Buda and Crypto MKT called on the Association of Banks and Financial Institutions (ABIF) to define whether crypto firms will have access to banking services, or if the banks “are determined to prevent the existence” of the young industry. The companies also called for both the authorities and the public to pay attention to the issue “before it’s too late.”

“The lack of knowledge and regulatory clarity has given rise to the fact that some banks, out of fear, misinformation, or perhaps by strategy, are refusing to provide their services to anyone who has any relationship with any digital asset,” the two companies said in a joint statement. “In Chile, the regulation is in the hands of a few, who are acting as de facto regulators and are opting to prohibit.”