Chile is a land known for its flexible stance on economic policy, so it would be bizarre to see it crack down on cryptocurrencies and other alternative financial instruments.
However, the latest report from the country proposes that cryptocurrency exchanges are feeling the heat as banks deny them access to accounts.
Two Chilean exchanges — Buda.com and CryptoMKT — put out an ad in a newspaper to say that the local crypto market is being “crushed without studying and understanding its reach.”
“Cryptocurrencies are an innovation capable of improving the lives of people and helping in the development of the financial world and inclusion,” said a statement from the companies published by La Tercera.
The ad these companies displayed explained that Buda.com had received notice one of its accounts would be shut down, while CryptoMKT.com was told it may have one of its accounts closed.
One of the banks was supposedly instructed to refuse a new account to anyone dealing with cryptocurrencies.
Although the Chilean central bank does not acknowledge any digital currency to be legal tender, there is no indication that it wants to restrict cryptocurrency trade.
At the moment, Chilean crypto traders are governed by local foreign exchange regulations.
“Chile is once again a pioneer in the area of financial technology in Latin America. We have the possibility of standing out and advancing via intelligent regulations that permit innovation to flourish in our country and, therefore, position us at the vanguard globally with Switzerland and Japan,” the two exchanges added.
Latin American firms, especially those based in Chile, have examined blockchain and other fintech products to boost their capacity to deliver better services to clients.
However, it seems that some banks in Chile might be hesitant to serve cryptocurrency customers specifically.