Buda is one of the country’s largest cryptocurrency exchanges. Two Chilean banks now have to follow the Court’s order and re-open the crypto exchange's accounts.
Bloomberg reported that the anti-monopoly court asked Itau Corpbanca and Banco del Estado de Chile to re-open the accounts of Buda in order to prevent the country from seeming to be banning cryptocurrencies.
These accounts were shut down earlier this month without further explanation
Banco Estado’s statement was that it decided “not operate with companies that are dedicated to the issuance or creation, brokerage, intermediation or serve as a platform for the so-called cryptocurrencies.”
Things don’t end here, as Buda exchange even sued the two banks for this act that was considered unjustified and arbitrary. The lawsuit currently continued against 10 more banks.
“Chile is showing its “B” side, that of being an extremely conservative country, even though we make huge efforts for the world to see us as liberals.” Guillermo Torrealba, Buda’s CEO said during an interview. He also stated that Chile is liberal to new technologies and such banks are killing the whole industry with such actions.
“It won’t be possible to buy and sell crypto in a safe business in Chile. We’ll have to go back five years and trade in person. It seems very arbitrary.”
The banking industry might harm the blockchain technology and cryptocurrencies
His opinion is that the banking sector controls and regulates the crypto business and not the laws, legislation, and rulings, as it should be normal. According to him, no one from the government, no legislator banned cryptos and this was only the decision of a really potent sector of the economy which is the banking industry.
There was a warning issued on April 5 on cryptocurrencies by the country's Financial Stability Council that may have triggered the ban as the banks started to shut accounts after this warning.