Major Latin American bitcoin exchange, Buda, recently suddenly become the subject of a banking embargo in Colombia, according to local reports. Buda similarly experienced the termination of its Chilean banking services in March of this year.
Also Read: Six Major Banks in Chile Sued by Another Cryptocurrency Exchange
Buda Suffers Termination of Banking Services in Colombia
Buda, a Latin American bitcoin exchange formerly known as Surbtc servicing the Argentinian, Chilean, Colombian, and Peruvian markets, suddenly became the subject of a financial blockade from Colombian banking institutions. The sudden termination of the exchange’s Colombian bank accounts has disrupted customer withdrawals, which are expected to be processed as normal from June 13th onward.
The CEO of Buda, Alejandro Beltran, confirmed that Bancolombia, Davivienda, and BBVA have all terminated financial services provided to the exchange via an email sent to customers. Buda also sought to assure customers that despite their funds are safely protected despite the disruptions to exchange’s operations.
No Other Exchanges Appear to Have Been Targeted
Local reports have attributed embargo to a warning issued by the Superintendence in February that encouraged banks to avoid having ties to Buda.com. The embargo does not target other Columbian exchanges, with local media reporting that “other local crypto exchanges remain open and unimpeded,” as neither Panda Exchange nor Bitinka has reported terminations of banking services.
The financial embargo against Buda has come at a time of increasing parliamentary dialogue regarding cryptocurrencies in Colombia.
During a recent debate in the Colombian Senate attended by representatives of the country’s Financial Superintendency, Bank of the Republic, and National Banking Association, Senator Antonio Navarro Wolff asserted that “the State assumed the task of warning about the risks of operations with cryptocurrencies but did not take actions to prevent or hinder these operations.”
“It is necessary to advance the issue of cryptocurrency, to be at the level of the countries that use this technology,” Senator Wolff added.
Buda Faces Banking Hurdles in Chile
In March, Buda, alongside cryptocurrency exchanges Cryptomarket, and Orionx, became the subject of an aggressive banking embargo from Chile’s seven major financial institutions, including state-owned bank, Banco del Estado de Chile.
Buda filed a lawsuit with Chile’s Court for the Defense of Free Competition, leading to the court ordering Banco del Estado de Chile, Scotiabank, and Itau Corpbanca to reopen the accounts of Buda and Cryptomkt. Banco del Estado de Chile has confirmed that it will comply with the court’s wishes, however, neither Scotiabank or Tiau have indicated that their intention to reopen the exchanges’ accounts.
Do you think that Buda will be driven from the Colombian markets? Share your thoughts in the comments section below!
Images courtesy of Shutterstock, Buda
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During a forum recently held by Chile’s Finance Commission of Deputies, President Marcel made comments indicating that his administration is considering developing a legislative apparatus designed to regulate and monitor activities pertaining to Chile’s cryptocurrency sector. Presently, cryptocurrencies are entirely unregulated in Chile, and are not legally recognized as a means of exchange or securities.
The apparent openness on the part of the Chilean administration to developing a regulatory apparatus for cryptocurrencies comprises a significant a departure from the recent banking embargo experienced in Chile.
The minister’s remarks came after the Court for the Defense of Free Competition (TDLC – Tribunal de Defensa de la Libre Competencia) ordered Banco del Estado de Chile and Itau Corpbanca to re-open the current accounts of Buda crypto exchange, formerly Surbtc.
The court also added in its order for the two banks to sign the contract with Buda “under the same terms of the contracts described between said parties previously,” the publication conveyed and quoted the court declaring, “the foregoing, inasmuch as the requested precautionary measure is necessary to prevent the eventual negative effects of the conduct submitted to this Tribunal.”
Buda “also asked the court to punish the 10 banks with the maximum of the fine established in DL211, with costs, and ordered [them] to stop the practice indicated, without prejudice to other measures deemed appropriate to the effect,” the news outlet described and noted that Buda accused the banks of executing:
Buda’s co-founder and chief executive officer, Guillermo Torrealba, has accused the country’s banks of “killing an entire industry.” Mr. Torrealba criticized the banks’ position, predicting, “It won’t be possible to buy and sell crypto in a safe business in Chile. We’ll have to go back five years and trade in person. It seems very arbitrary.”