Crypto Exchanges In Chile Call For Regulations

News, Regulation | March 27, 2018 By:

Two cryptocurrency exchanges from Chile are reportedly calling on the government’s regulatory association to clarify its position on the crypto industry.

In a public statement, bitcoin exchange Buda and ethereum trading platform CryptoMKT have asked the Association of Banks and Financial Institutions (ABIF) to “make its position transparent” after a number of Chilean banks reportedly shut down their accounts just for dealing with cryptocurrencies.

“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.”

The two exchanges, which are registered with the Financial Analysis Unit and other regulatory bodies in Chile, called on 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 two exchanges warn that the current approach has put Chile, normally seen as the South American country most friendly to FinTech, out of step with the international community and that it risks “making a fool out of itself.”

“We are killing an industry,” they said, “before studying and understanding its scope.”

In December 2017, Chile’s central bank cautioned individuals or businesses interested in investing in cryptocurrencies or accepting them as payment to “be duly informed of the risks they are incurring and evaluate whether said investments will comply with the legal regulations applicable in each case and in the various corresponding regulatory jurisdictions.”

The central bank also stressed that it constantly monitors the evolution of financial markets, including the analysis of the variables that may arise as a result of new technologies, as well as the regulatory approaches adopted in other jurisdictions that could eventually be considered for the development of local legislation.