On March 19, chilean banks started closing bank accounts of major cryptocurrency exchanges in the country. First in the line were Itau Corpbanca and Scotiabank followed by Banco del Estado de Chile only a week later.
Now, the exchanges in question gathered to fight back, legally. According to Bloomberg report, three exchanges hit by the ban, BUDA, Orionx and CryptoMarket have jointly appealed the bank decisions, that essentially ended their platforms.
Crypto community in Chile also joined the battle and try to help the exchanges with a Twitter action under a hashtag #ChileQuiereCryptos. It is obvious that people in this Southamerican country want to have an option of trading cryptocurrencies.
Many Twitter users from Chile see the banks approach to this matter as a step back and regression of their country.
The roof bank organization in Chile excluded itself from the case stating that regulations are in the realm of each individual institution.
According to Bloomberg, BUDA exchange traded around $1 mln daily before its bank account was closed. Torrealba continued:
“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.”
Similar bans in other countries have resulted in increased trading volumes of peer-to-peer exchanges like Localbitcoins.
Most recently, certain Canadian banks went the same road and prohibited their customers to buy cryptocurrencies through their institutions. Users circumvented that obstacle by reverting to back to the always available option – buying from local people, straight up cash for crypto.