Chilean cryptocurrency exchanges call for regulatory association

Chile government once financially supported a Bitcoin exchange called SURBTC to facilitate donations into the country after the 2015 earthquake. The two exchanges are asking the regulator to come clear on the issue of the use of banks by those holding and trading cryptocurrencies.

BUDA and CRYPTOMKT cryptocurrency exchanges are asking the government to clarify its regulatory position on the issue of using bank accounts. Only if a company is dealing with cryptocurrencies. This is after the two found their accounts closed

This is after the two exchanges their bank accounts frozen and it was that their bank received instructions not to open accounts or anyone holding or dealing with cryptocurrency. The two are asking Association of Banks and Financial Institutions (ABIF) to clarify on the matter and come up with clear regulations relating to the issue.

They say lack of knowledge and regulatory clarity is making some banks to operate out of fear and misinformation. Else by strategy and to refuse their services to people dealing with digital assets.

The Chile government once funded Bitcoin exchange SURBTC that used to facilitate donations. However, from around the world after September 2015 earthquake in the country. Now, after sudden rise of digital currencies in late 2017, the country is turning to be a kind of regulatory limbo.

The two say their platforms are cautious of the dangers of trading cryptocurrencies. They say they meet their anti-money laundering and anti-terrorist funding standards. Since they are registered with the Financial Analysis Unit (UAF) and FATF.

They are also calling on the public to pay attention to the issue before it is too late.

Central Bank position on cryptocurrencies

Last year in August, the governor of the Central Bank of Chile Mario Marcel said that the central bank. It was many years away from issuing a cryptocurrency. However, he says such innovations should not be back by strict regulations.

He said,

“According to the Governor of the Bank of England, Mark Carney, FinTech innovations should not be in the ‘Far West,’ nor be choked at birth”.

He said distributed ledger technology has opportunities for increasing market efficiency with lower cost. As well as collateral risks including the cryptocurrency market volatility and potential for flash crashes.

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