Colombian Banks Shutter Accounts of Domestic Cryptocurrency Exchange

Bitcoin, Ethereum, Altcoins, Mining, Trading & more

Colombian Banks Shutter Accounts of Domestic Cryptocurrency Exchange

Buda.com, is one of the largest markets of cryptocurrency, in South America. They have provided gateways to keep up with the growing technology, through Bitcoin, Ether and other digital assets.

But according to infobae.com, Buda.com have faced a huge blow as many Columbian banks including, Davivenda, BBVA, as well as Bancolombia, have closed down Buda.com’s accounts.

What does the CEO have to say?

Alejandro Beltran, who is the CEO of the cryptocurrency exchange – Buda.com, had officially announced that “Columbian banks have closed Buda.com’s accounts.” He had also mentioned that they had received a notice from the country’s Financial Supervisor, but he considered it as a warning and did not require any action.

But according to Jorge Castano Gutierrez, who is the Columbian country’s financial superintendent, says, “The entities under surveillance are not authorized to intermediate, guard or invest with these instruments.”

What does the bank have to say?

According to diariobitcoin.com, Buda.com have been facing problems on their Bancolombia platform from the 7th of June.
The banks gave no explanation and ended up cancelling their products. But by the 13th of June, the delayed withdrawals are said to be available.

The team of Buda.com has urged the users to not worry since their funds are well protected on the platform. They also mentioned that this action by the bank has not only affected Buda.com but also to these users on the platform seeking to access their funds in Columbian pesos.

Chile’s similar scenario-

The sufferings of Buda.com was witnessed in Chile as well. This happened in March, when the Chilean State Bank, Scotiabank, Banco Itau, along with 7 other institutions had mentioned that they would shut down their cryptocurrency bank accounts. This was done mainly due to the insufficient regulation. Buda.com was accompanied by Orionx as well as CryptoMarket exchanges as the banks had taken the same action on them as well.

Chile’s Court of Defense of free Competition ordered the banks to reopen the accounts following a three-month legal battle. Thus the banks reopened the accounts towards the end of May.

The CryptoMarket, as well as Buda.com, asked Chile’s banking association, ABIF (Asociacion de Bancos e Instituciones Financeria) in order to issue a statement which would provide a clear condition on cryptocurrencies. Hence, the exchanges concluded that-

  • They have channels to work with local authorities
  • They would follow anti-money laundering and anti-terrorist financing rules
  • They provide pay value-added taxes.

But ABIF replied by saying that these issues had to be resolved between the bank and its customer.

A debate on Cryptocurrencies held in Colombian Senate concluded that the state was indeed responsible for warning related to risks but never disrupted the operations.

Buda.com has still been active by allowing users to trade bitcoin, Litecoin, Ethereum and Bitcoin cash in Columbia, Chile, Peru as well as Argentina.
Although the other cryptocurrency platforms like Panda Exchange and BitINKA haven’t faced any such problems as of yet.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.