Cryptocurrency exchanges in Chile are beginning to feel the heat of regulatory crackdown orchestrated by the country’s mainstream finance regulators. In response, a handful of relevant exchange platforms in the country have spoken out over what they claim are unfair measures being taken against their operations.
The Need for Fair Crypto Regulations
Like many other countries, the government finds blockchain technology to be appealing, primarily as a means of improving governance mechanisms. Earlier in March 2018, the Chilean government announced that it would begin to use the technology to regulate the energy sector.
While blockchain is being embraced in Chile, the same cannot be said for the cryptocurrency market which seems to be coming under increased scrutiny.
BUDA and CRYPTOMKT are two cryptocurrency exchange platforms that have found themselves in precisely the same situation. The former is a platform that deals in bitcoin exchange transactions while the latter deals in ether exchange transactions.
Without warning, the bank accounts of both platforms were closed by their banks. As a result, the pair has banded together to put up a united front against the banks.
The two platforms issued a joint statement calling on the country’s Association of Banks and Financial Institutions (ABIF) to clarify its position on the cryptocurrency market.
This comes as a spokesperson from CRYPTOMKT revealed that their banks had explained that they would not to offer banking services to any entity involved in the crypto market. To this end, the two exchange platforms are urging the ABIF to make clear its position.
The two platforms have also leveled accusations against the financial regulators in the country describing them as trying to stifle the existence of the market.
According to the statement, the platforms say that these regulators are determined to prevent access to a paradigm-shifting technology. Both platforms also cast doubt on whether crypto exchange platforms will be given fair access to banking facilities in order to support their business.
The Public Needs to Wake Up
Apart from going after banks and the ABIF, another purpose of the public statement was to issue a clarion call to the Chilean public, urging them to wake up and pay attention to the goings-on in the crypto market.
Specifically, the two platforms declared that they employ the highest levels of best practices in their operations regarding anti-money laundering and anti-terrorist funding measures.
On top of these security measures, following the 2015 earthquake that devastated the country, the government backed Buda. The move incurred substantial crypto donations from many places around the world to support aid relief.
It is now up to the ABIF to strike a reasonable balance between supporting the crypto market and adequately regulating the market to prevent money laundering and other illicit financial activities.
Chile seems to be another example of a country trying to catch up with a trend that, for the most part, seemed to be a fad only to jet off into hitherto unheard of heights.