Yet another blow to cryptocurrency by traditional banking – this time in Chile. State-owned BancoEstado was providing financial services to the three exchanges but has just announced that their accounts will be closed in ten days. This news was reported in the local newspaper, El Mercurio.
The bank announced – “BancoEstado adopted the decision, for now, not to operate with companies that are dedicated to the issue or creation, brokerage, intermediation or serve as a platform for calls or so-called cryptocurrencies.”
Orionx, CryptoMKT and Buda.com are the three exchanges in question. Just prior to the BancoEstado announcement, Scotiabank in Canada and Itaú in Brazil, closed accounts for the same exchanges.
All three exchanges have indicated that client funds are safe and could be returned.
This latest move adds to a growing list of crypto businesses stone-walled by the traditional banking system.
2018 started off with a shock as Visa suspended a number of prominent cryptocurrency card providers without any notice, leaving some customers without cash.
Metropolitan Bank suspended banking services to cryptocurrency business and US Treasury Secretary Steven Mnuchin indicated that an international effort to control and manage transfers in cryptocurrency could be forthcoming.
Bitwala also reported that their bank facilities were suspended with immediate effect but managed to re-invent themselves by announcing the launch of a new blockchain Bank.
Keeping pace with the mood in banking circles, Facebook, Google, Twitter are banning ICO and cryptocurrency advertisements. Just recently, Mailchimp, who provides marketing automation for e-commerce businesses, announced they will shut down accounts related to cryptocurrency and blockchain.
Many believe that cryptocurrency is unstoppable even though the market has been through the wringer of late. Predictions of the Bitcoin price movement continue to emerge and Abra CEO Bill Barhydt thinks a major rally is around the corner – Bitcoin price could turn on a dime and explode
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