According to a report, the Chilean cryptocurrency exchange platforms: Buda, Orionix, and Cryptomkt, have their cases heard by a request from the Court of defense of Free Competition.
Banco del Estado de Chile, which is the only public bank left in Chile gave a notice to Orionx and Cryptomarket that their accounts will be suspended. The bank has for 65 years sought the provision of services to smaller companies. The information regarding the closure of accounts was given not long after the three exchanges got account terminations from the Bank of Nova Scotia and Itau Unibanco Holding S.A of Brazil.
As stated by the exchanges’ lawyer Mario Bravo, “We are going to use TDLC to all the banks that denied or hindered the opening of current accounts to these companies and those who, having opened them, closed them. Here are the majority of the banks in the square”. According to Mr bravo, the event is an abusive exploitation of a situation of economic dependence.
According to Buda’s co-founder and chief executive officer, Guillermo Torrealba, the country’s banks are killing an entire industry. He criticized the bank’s position and predicts that it won’t be possible to buy and sell crypto in a safe business in Chile. He says they will have to go back five years and trade in person, which seems very arbitrary.
After facilitating daily trades of about $1 million USD prior to the current banking embargo, Buda CEO says that hopefully, the appeals court will see they are right.
In spite of the banking embargo that is forcing the Chilean exchanges to return all funds that are being held in fiat currency to investors, Orionx says it won’t stop offering to trade for crypto to crypto pairings.