Chile is a land known for its liberal stance on economic policy, so it would be strange to see it crack down on cryptocurrencies and other alternative financial instruments.
However, a recent report from the country suggests that cryptocurrency exchanges are feeling the heat as banks deny them access to accounts.
Two Chilean exchanges — Buda.com and CryptoMKT — put out an ad in a newspaper to say that the local crypto market is being “crushed without studying and understanding its reach.”
“Cryptocurrencies are an innovation capable of improving the lives of people and helping in the development of the financial world and inclusion,” read a statement from the companies published by La Tercera.
The ad these companies took out explained that Buda.com had received notice one of its accounts would be shut down, while CryptoMKT.com was informed it may have one of its accounts closed.
One of the banks was allegedly instructed to refuse a new account to anyone dealing with cryptocurrencies.
Although the Chilean central bank does not consider any digital currency to be legal tender, there is no indication that it wishes to restrict cryptocurrency trade.
At present, Chilean crypto traders are governed by local foreign exchange regulations.
“Chile is once again a pioneer in the area of financial technology in Latin America. We have the possibility of standing out and advancing via intelligent regulations that permit innovation to flourish in our country and, therefore, position us at the vanguard globally with Switzerland and Japan,”the two exchanges added.
Latin American firms, particularly those based in Chile, have experimented with blockchain and other fintech products to boost their capacity to deliver better services to clients.
However, it appears that some banks in Chile might be reticent to serve cryptocurrency customers specifically.
This article appeared first on Cryptovest
