CEO of the cryptocurrency exchange, Alejandro Beltran revealed that Colombian banks have shuttered Buda.com’s accounts. All Buda.com accounts have been closed by Banks Bancolombia, BBVA, and Davivenda.
A notice of warning was earlier sent by the country’s Financial Supervisor to financial institutions regarding their dealings with cryptocurrencies. The letter which was sent from Jorge Castano Gutierrez, Colombia’s financial superintendent, noted the entities that are under scrutiny are not permitted to support of deal in cryptocurrencies.
According to Beltran, the letter was just an alert which did not need a response.
Such issues are yet to be reported by other cryptocurrency platforms such as BitINK and Panda Exchange.
Since June 7, Buda.com started to notice malfunctions with the Bancolombia platform. Bank representatives reported to Buda.com that they have stopped its products and gave no further details. According to Buda.com, withdrawals have been obstructed but will hopefully be functional by June 13.
Buda.com team also noted that in addition to the fact that the company has been affected by the banks’ actions, users who wish to access funds in Colombian pesos were also affected. The company encouraged users not be worried about the situation.
This situation is quite similar to the case that occurred in Chile in March when the Chilean State Bank, Scotiabank, Banco Itau including seven other institutions noted that it will shutter cryptocurrency bank account as a result of inadequate regulation. The banks also took a similar action with the Orionx and CryptoMarket exchanges including Buda.com
Chile’s banking association, Association de Bancos e Institutiones Financeria (ABIF) was asked by Buda.com and CryptoMarket to give a definite stance on cryptocurrencies. According to the exchanges, they operated safe platforms, have channels to operate with local authorities, abide by anti-money laundering and anti-terrorist financing rules and pay value-added taxes.
ABIF noted that the bank has to settle the issue with its customers.
Chile’s Court of Defense of free Competition asked the banks to reopen the accounts after a three-month legal struggle. The bank reopened the accounts in May.