Less than a month ago, the main banks in Chile were suspending local exchange accounts. The platforms concerned are preparing to defend their cases before the Court of Defense of Free Competition (TDLC).
The country's national bank - Banco del Estado de Chile (BEC) - recently warned the Chilean Buda, Orionx and Cryptomarket exchanges of the suspension of their bank accounts. This warning comes after those of other banks, Bank of Nova Scotia and Itau Unibanco Holding SA
The exchange operators then decided to oppose these suspensions of accounts, arguing that it was an unfair practice that would have a negative impact on the country and its Fintech industry.
"They are killing an entire industry. It will no longer be possible to buy and sell cryptocurrency in a safe business in Chile. We will have to go back 5 years, and exchange in person. It seems very arbitrary. " Guillermo Torrealba, cofounder and CEO of the exchange Buda
The exchanges will therefore join forces to defend against the TDLC. Mario Bravo, the lawyer in charge of the case, described the action of the banks as "an abusive exploitation of a situation of economic dependence" .
The situation is therefore tense in Chile, some local media reports also that this embargo could come from the state itself. It would not be the first time a government has been directly attacking crypto space through banks .
Although the Chilean exchanges are obliged to return all the funds in their fiat currency to their clients, they are not yet forced to close. For example, Orionx said it would still be possible to trade crypto to crypto .