Crypto exchanges in Chile affected tremendously due to Banco Estado’s decision

According to local publication El Mercurio, it was revealed that Banco del Estado de Chile (Banco Estado) has declined to function the accounts of Buda, Orionx, and Cryptomkt, this move could most likely provide a major blow for cryptocurrency exchanges in Chile.

As per a statement issued by the bank, it reads “Banco Estado has taken a decision to not entertain any firms that issue or generate cryptocurrencies, that offer brokerage and intermediary services with the use of cryptocurrencies, and do not serve as a platform for crypto exchange transactions.”

Banco Estado is the sole public bank in Chile, it manages all financial transactions made by the state. Since the very beginning, it has concentrated on aiding clients and small companies not covered by banking administrations. The only public bank of Chile is said to be the most secure bank in Latin America and is also the nations largest issuer of debit cards.

An Orionx official revealed that the account closures were not the last straw, highlighting that the money of the customers is “completely supported, and  is in no jeopardy of bankruptcy.”

Pablo Chavez from Buda revealed that this move taken by Banko Estado might ignite the cryptocurrency exchange to launch its own bank.

Earlier in March, a public statement aimed at the Association of Banks and Financial Institutions (ABFI), requesting for fair rules was issued by Buda and Cryptomkt. The exchanges requested regulators to “display their position more clearly”. The exchanges took this move because the bank accounts of both exchanges were frozen without any cautioning.

For the purpose of combating money laundering and tax evasion, shutting bank accounts is a very common practice.

In March, Finnish wallet service provider Prasos Oyis said it was on the brink of suspending operations as most local banks had refused to conduct business with it. However, one of the largest crypto exchanges, Coinbase, has struck a surprising deal that will allow it to open an account with one of the oldest British banks, Barclays.

About the author


John Mathhew

John Mathhew – The content head at Bittflex, he has done her PHD in English literature and masters in finance as well, he was introduced to the blockchain and crypto industry during her college time spending hours searching over the internet and was extremely fascinated and then took on the pace and started writing her own finance and crypto blogs. He has all the information on the subject we required and her writing skills are just fantastic. He really expresses herself beautifully through each and every article he delivers.

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