"Chilean Crypto Exchange Drama"

Updated: Apr 20, 2018

A few weeks ago, Chilean cryptocurrency exchanges received an unpleasant surprise when three Chilean Banks announced they were looking into closing accounts of clients that were linked to cryptocurrency. The banks are Scotiabank, Itau and BCI, the first two banks closed down two accounts of well known exchanges in the country CryptoMKT and

Both exchanges affected were interviewed by the radio station Bio Bio Chile, they both agreed that these banks are acting together in this decision to team up against cryptocurrencies.

CryptoMKT and were only left with one account each in Banco Estado “The Bank of all Chileans” as their slogan says. Well it’s for every Chilean except for those who have cryptocurrency, this past weekend the accounts were closed "temporarily". It makes me wonder why? Why all of a sudden? Why at the same time? Weird right, or may be it´s not weird at all and it´s just the threat or the reaction to the unknown.

According to BioBio Chile, the general manager of told the media regarding the bank situation that "the reasons are not given because they are not clear". He explained that what they ask is to please create a negotiating table among those involved. He added "I understand that there are many people making scams, that there are people taking advantage of this, but we have to separate the chaff from the wheat, otherwise we will pay just for sinners and we are going to drown a technology that could bring many benefits to the country."

It´s a big drama for these exchange companies because the support they were receiving from banks will no longer be there and it makes it complicated for Chileans to cash out there crypto with Chilean pesos. The exchange companies will still exist, but it will be harder to work with Chilean pesos.

Banks are putting up a fight against cryptocurrencies, but it won’t stop them from working. It will just make it harder for people to cash there crypto but not impossible.

It must be very frustrating to want to prove to everyone that your business is not a scam. CryptoMKT: "We seek to show that our business is legitimate, that it meets legal compliance standards." – Bio Bio Chile.

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