The regulatory situation surrounding cryptocurrency is creating a lot of confusion. Very few countries have any active guidelines in this regard, although it seems that will come to change rather soon. Chile’s Association of Banks and Financial Institutions has been asked to take a definitive stance on this particular industry once and for all. How that will play out exactly is anybody’s guess as of right now.
Determining the Fate of Cryptocurrency in Chile
Over the past twelve months, a lot has changed for cryptocurrency in Chile. Not all of these developments have been positive, as it seems there is still some confusion as to what this new form of money should be labeled exactly. Moreover, various banks have taken extreme measures to dissuade companies from dealing with Bitcoin and similar forms of currency.
As such, the companies affected by these decisions have taken a unique approach to ensuring those developments do not stick. More specifically, the exchanges have taken matters into their own hands in this regard. They filed requests with Chile’s Association of Banks and Financial Institutions (ABIF) to clarify its position on the cryptocurrency industry as a whole. Right now, there are still too many conflicting signs as to how cryptocurrencies look in Chile.
Two companies in particular, BUDA and CryptoMKT, accused their banks of closing their accounts for no legitimate reason. Additionally, the banks allegedly informed both companies that the institutions could no longer let anyone related to cryptocurrencies open accounts with them. It is evident that such wording causes even more friction and confusion.
With no official guidelines regarding cryptocurrency, it is only normal that exchanges and other service providers are starting to wonder what the future holds in Chile. Right now, the lack of both knowledge and regulatory clarity has allowed banks to refuse services to specific entities. It is an unfavorable situation that will need to be addressed sooner rather than later. In Chile, it seems the current approach leans toward preventing this form of money from gaining any traction.
For the time being, it remains to be seen how ABIF will declare its position on cryptocurrencies. As no one knows whether the institution is in favor of or against Bitcoin, the outcome could easily swing either way. Depending on how the institution decides to label cryptocurrencies moving forward, the Chilean ecosystem will either flourish or blow up pretty quickly. With banks now closing accounts willy-nilly, the current situation doesn’t look all that promising.
With both BUDA and CryptoMKT claiming their platforms are “safe and functional”, these firms have a lot of questions which will need to be answered. Moreover, both companies have an open dialogue with the local authorities, which should mean they are operating within the confines of the law as of right now. Only time will tell whether or not cryptocurrency has a future in Chile.