Cryptocurrency Exchanges Still Fighting Private Banks for Right to Open Bank Accounts in Chile – Regulation Bitcoin News
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The conflict between banks and cryptocurrency exchanges in Chile continues to develop, as some banks are reluctant to serve such institutions. A recent report by the exchanges states that most of these banks refuse to accept crypto companies as clients due to the risks, which are nevertheless managed when serving other types of clients.
Cryptocurrency exchanges continue to struggle against banks in Chile
Cryptocurrency exchanges and other crypto-related companies are still fighting private banks for the right to open and manage bank accounts in Chile. The legal battle, which started already in 2018 when several banks closed their bank accounts of several exchanges, will be resolved this year in the national court of free competition.
Chilean stock exchange Buda.com produced a document stating that banks colluded to deny their services to cryptocurrency exchanges for reasons applicable to other businesses, such as businesses that sell jewelry, watches, vehicles of any kind, art objects, or antiques. .
Of these companies, the document states that they “are widely recognized as potential means of money laundering – and are also governed by obligations in comparative law, but not in Chilean law,” and criticizes the use of money laundering and laundering. The lack of clear crypto regulations as a mere excuse for anti-competitive practices.
Explaining the conflict
The private banks’ defense focuses on the fact that there are still no defined protocols for managing the risks associated with cryptocurrency operations, and that money laundering activities cannot be detected and dealt with should they occur. However, exchanges debate that banks resist switching without clear laws, with 79% of foreclosures or service incidents occurring within three months.
Bice Bank, one of the banks being sued, states that it had specified that it would not deal with cryptocurrency-based companies three years before the lawsuit began, stating that it would only do so after due diligence and the approval of the counterparty. -Regulatory authority for money laundering and terrorist financing.
On the other hand, Security Bank, another financial institution, stated that its decision stems from the fact that cryptocurrency exchanges “do not have the necessary regulation to adequately prevent these risks, and will not in the short term.”
However, regulation of the industry is slowly unraveling as Chile passed and recently sanctioned a fintech law that includes cryptocurrency. In addition, some exchanges have already opened accounts after signing due diligence agreements, as Buda did in October with Bci bank.
What do you think about the legal conflict between Chilean banks and cryptocurrency exchanges? Let us know in the comments section below.
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