Chilean bank Reopens Accounts of Cryptocurrency Exchanges

Chilean bank Reopens Accounts of Cryptocurrency Exchanges

June 5, 2018 Off By dan saada

Following the court order for all the major banks in Chile to reopen its current accounts of cryptocurrency exchanges, Buda.com and Cryptomkt, one bank has compiled. Bancoestado has reportedly made provisions to open an account for Cryptomkt exchange, which experts to resume crypto transactions in the coming days.

Bancoestado, the only public bank in Chile, finalized its reopening of the current account for Cryptomkt, as what confirmed by Martin Jofre, the founding partner of the platform. The action follows the order by Chile’s Tribunal for Defense of Free Competition for three of Chile’s largest banks to reopen the accounts of two exchanges. Scotiabank, Itau, and Bancoestado were all ordered to reopen the bank accounts of both the Buda.com and Cryptomkt.

Scotiabank is the Chilean unit of Canada’s Scotiabank and Itau is a subsidiary of the Brazilian bank Itau Unibanc. After the court order, these banks appealed the decision. However, the court rejected the appeal and stated that they must reopen the account accounts of the two crypto exchange while the case is still pending.

According to Martin Jofre, after the announcement of the closing of the exchange accounts, they returned 99.8% of the funds to all the clients of Cryptomkt. Today, they will start from scratch. The exchange is expected to resume and be back in the currency transaction market in Chile in the coming days.

While the Bancoestado has allegedly been in contact with the Cryptomkt to reopen the exchange’s bank account, Itau and Scotiabank are expected to appeal to the preventive measures accepted by the TDLC. Buda.com has not yet confirmed that the bank account will be reopened. Samuel Cañas, the legal manager of the Buda exchange, indicated after the court order that they will continue to discredit all the accusations presented by the banks in their brief, which demonstrate a serious ignorance of the business and the economic institutions that support their activity.

Recently, Bravo law firm explained that the only alternative the banks can do is to take the case of the supreme court. However, if that happens, banks must make effective reopening of the exchange bank accounts. With the arrangement made by the Bancoestado, it is then expected that the cryptocurrency transaction will be back soon in the coming days. Experts also suggest that crypto exchanges should comply with all the regulations to avoid future transaction conflicts.

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