After years of legal battles in Chile, a cryptocurrency exchange has managed to open a bank account with Bci, a financial institution that has established a protocol to serve these businesses. The first exchange that opened a bank account with the institution was Buda, a local exchange, which met the requirements of the bank in the mentioned protocol.
Cryptocurrency exchanges can now open bank accounts in Chile
On October 28, Bci, a Chilean bank, announced that it had developed a protocol allowing cryptocurrency exchanges to open checking accounts with the institution. This marks a milestone for cryptocurrency exchanges in the country, which had been fighting for years for the right to use traditional banking services.
The protocol developed includes a series of requirements inspired by the recommendations issued by the Financial Action Task Force (FATF), which include compliance with compliance processes, traceability of transactions, prevention of money laundering, terrorist financing and audit reports from an outside company. .
A bank spokesperson told local newspaper Diario Financiero that the move would be beneficial for exchange customers. The bank declared:
Our objective is to support their clients so that they can operate in this market in a framework of security and trust.
First account opened
The history of the battle between cryptocurrency exchanges and banks in Chile dates back to 2018, when Buda and Crypto MKT, two local cryptocurrency exchanges, opened a court battle to be able to benefit from banking services after the closure of their accounts. The legal battle continues to this day, as exchanges say banks are abusing their position of power to cripple possible competition that alternative financial systems, including cryptocurrency, could pose to them.
Buda, which is one of the exchanges still involved in the mentioned legal battle with other banks, was the first cryptocurrency exchange to open a current account at Bci, after signing a OK with the bank. This agreement also allows other exchanges to request banking services from the institution, having to fulfill the conditions stipulated in the established procedure.
On this development, the CEO of Buda, Guillermo Torrealba declared:
We are satisfied with this agreement and grateful for Banco Bci’s vision. Sooner or later, cryptocurrencies will be a fundamental part of banking and we want to help accelerate that moment.
In other Latam countries, banks have been more open to offering cryptocurrency-related services, such as Santander, which already has a cryptocurrency asset division and is Planning to offer cryptocurrency services to its customers in Brazil.
What do you think of Bci opening banking services to crypto exchanges in Chile? Tell us in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons