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Chilean Cryptocurrency Exchanges to Appeal Account Terminations

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Several Chilean cryptocurrency exchanges have expressed their desire to appeal the decision by a number of Chilean banks, including state-owned Banco del Estado de Chile, to suspend the accounts of cryptocurrency exchanges.

According to a report on Bloomberg, Chilean cryptocurrency exchange platforms, Buda, Orionx, and Cryptomkt, have successfully asked for e their cases to be heard by an appeals court – the Court of Defense of Free Competition (TDLC).

Beginning this month, Buda, Orionx, and Cryptomarket were given notice by Banco del Estado de Chile – the last remaining public bank in Chile, which has for sixty-five years, provided services to smaller enterprises and the country’s unbanked, that their accounts with the bank were to be suspended.

The notices were given not long after the three exchanges also received account terminations from The Bank of Nova Scotia and Itau Unibanco Holding S.A of Brazil.

Mario Bravo, the exchanges’ legal representative, has stated “We are going to sue the TDLC to all the banks that denied or hindered the opening of current accounts to these companies and to those who, having opened them, closed them. Here are the majority of the banks in the square.”

Bravo considers the events as comprising “an abusive exploitation of a situation of economic dependence.”

Buda’s co-founder and chief executive officer, Guillermo Torrealba, has claimed that the country’s banks are “killing an entire industry.” Torrealba bashed the banks’ position, projecting, “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.”

Before the banking embargo, Buda facilitated an estimated $1 million USD worth of cryptocurrency trades on a daily basis. “Hopefully the appeals court will see we’re right,” said Torrealba.

Despite the banking embargo that forced the Chilean exchanges to return all funds held in fiat currency to its investors, Orionx has said that it would keep on offering trading services for crypto-to-crypto pairings.

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