It seems the south amerian wealthiest nation Chile has lost its love for cryptocurrency and they’ve made no hide about it, and this time they’ve went far closing the account of cryptocurrency exchanges and traders for no reason
Banks have been making life tougher for cryptocurrency companies and enthusiast, they seems to be blocking the transaction of digital currency, and this has been on the high side lately.
In chile, the banks are hard on the cryptocurrency industry in a way that is not appreciated or friendly. Closing many trading platforms bank accounts for no tangible reason.
This issue currently affects Buda, Orionx, and CryptoMarket, although other companies may be suffering from similar issues as well.
What makes this development so worrisome is that none of these companies use the same primary bank.
Instead, a joint decision has been made by several financial institutions to shut down the bank accounts of cryptocurrency trading firms.
With no explanation for this harsh course of action, it is only normal that there will be a lot of backlash over this particular decision.
Struggles like these are not uncommon in the world of Bitcoin and other cryptocurrencies.
It is the first time such a development has taken place within Chile, though,
as the country has been relatively quiet on the cryptocurrency front so far. At the same time, it seems this “blanket ban” on cryptocurrency will not relent anytime soon, although not every financial institution in the country is taking this aggressive stance as of right now.
One possible reason for this development is that local entrepreneurs have begun creating their own cryptocurrencies in recent months. Both Chaucha and Luka are two such currencies, although it remains to be seen how popular those tokens really are.
Even so, the affected exchanges only process a small amount of trading volume on a daily basis,
which should not warrant such a ban against this industry at this stage.
For the time being, we will have to wait and see how things play out.
The lack of active cryptocurrency regulation in Chile will need to be addressed in the near future.
If this news is any indication, that regulation may not favor cryptocurrencies.
With a Chilean court currently reviewing this decision, it remains to be determined whether any positive
changes will be noted in the weeks and months to come.