Cryptocurrency exchanges are still battling private banks for the right to open bank accounts in Chile – Regulation Bitcoin News

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The conflict between banks and cryptocurrency exchanges in Chile continues to grow, as some banks are reluctant to serve this type of institution. A new report prepared by the exchanges reports that most of these banks refuse to include crypto companies as customers for risks that are nevertheless managed in the case of serving other types of customers.

Cryptocurrency exchanges are still fighting against banks in Chile

Cryptocurrency exchanges and other crypto-related companies are still battling private banks for the right to open and operate bank accounts in Chile. The legal battle, which began in 2018 when a series of exchanges had their bank accounts closed by several banking establishments, will be defined this year in a national competition court.

Buda.com, a Chilean exchange, prepared a document concluding that banks agree to deny their services to cryptocurrency exchanges for reasons applicable to other businesses, such as businesses operating with jewelry, watches, vehicles of all kinds, works of art or antiques. .

Regarding these companies, the document indicates that they “are universally recognized as a possible means of money laundering – and which, moreover, are regulated by being obligated subjects in comparative law, but not in Chilean law, and criticizes the use of money laundering and the lack of clear crypto regulations as a mere excuse to take uncompetitive action.

Explain the conflict

The defense of private banks revolves around the fact that there are still no defined protocols to manage the risks associated with cryptocurrency operations, and that money laundering activities, if they occurred, would not could not be detected and processed. However, exchanges argue that banks act against exchanges based on no clear law, with 79% of shutdown or denial of service events occurring within a three-month period.

Bice Bank, one of the banks included in the lawsuit, says it had defined that it would not work with cryptocurrency-based companies three years before the start of the lawsuit, establishing that it would only ‘in the event of due diligence and approval of the anti-money laundering and terrorist financing regulator.

On the other hand, Security Bank, another financial institution, said its decision stemmed from the fact that cryptocurrency exchanges “do not have the necessary regulations to adequately prevent these risks and neither will they have it. short term”.

However, regulation in the area is slowly falling apart, with Chile having approved and recently sanctioned a fintech law that includes cryptocurrency in its scope. Moreover, some exchanges have already opened accounts after signing due diligence agreements, such as Buda did with Bci bank in October.

What do you think of the legal conflict between banks and cryptocurrency exchanges in Chile? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game, entering the cryptosphere when the price spike happened in December 2017. Having a background in computer engineering, living in Venezuela and impacted by the cryptocurrency boom at the social, it offers a different point of view. on the success of crypto and how it helps the unbanked and underserved.

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