A cryptocurrency exchange was able to open a Bci bank account after years of legal battles in Chile. This financial institution established the protocol for these types of businesses and opened a banking account. Buda, an exchange in Chile, was the first one to open a Bci account. It met the protocols of the bank.
Chile Can Now Open Cryptocurrency Exchange Accounts
Bci in Chile announced, on October 28, that it has developed a protocol that allows cryptocurrency exchanges open checking accounts at the bank. It is a significant milestone for cryptocurrency exchanges, who have been fighting for traditional banking services since years.
This protocol was developed based on recommendations from the Financial Action Task Force. These include compliance processes, traceability, prevent money laundering and financing of terrorists, as well as audit reports from outside companies.
The bank spokesperson told Diario Financiero, the local newspaper that the change would bring benefits to customers who use the exchanges. According to the bank:
We aim to support our clients in order that they may operate on this market with security and trust.
Initial Account Opening
It all started in 2018, when two Chilean cryptocurrency exchanges called Buda and Crypto MKT began a court fight to allow them to access banking services. The legal fight continues today, with the exchanges claiming that banks abuse their power in order to limit the competition they might face from other financial systems like cryptocurrency.
Buda is an exchange that was involved in the judicial dispute with other banks. It was also the first crypto exchange to open a BCI checking account after it signed an agreement. Other exchanges can also seek services from the bank through this agreement, provided they meet the conditions.
Guillermo Torrealba, Buda’s CEO, stated that this was a significant development.
We are happy with this agreement and grateful for Banco Bci’s vision. We want to accelerate the adoption of cryptocurrencies in banking.
In other countries of Latam, banks have been more open to offering cryptocurrency-related services, like Santander, which already has a cryptocurrency asset division and is planning to offer cryptocurrency services to its customers in Brasil.
How do you feel about BCI opening their banking services for crypto-exchanges in Chile. Leave a comment below.
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