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Chile bank group head: Order to reopen cryptocurrency firms' accounts 'strange'

Segismundo Schulin-Zeuthen, the president of Chilean banking association Abif, expressed concerns over antitrust court TDLC's recent order for banks to reopen the accounts of firms that trade cryptocurrencies, Diario Financiero reported.

Schulin-Zeuthen said the TDLC's order is "strange" and "unusual" given that a decision on the issue is still pending with an appeals court. Banks must "comply with the regulations, the Financial Analysis Unit has become very demanding and we have to comply with compliance standards," the Abif head added.

The TDLC in April ordered banks to reopen the bank accounts of cryptocurrency platforms CryptoMKT and BUDA, noting that this is "necessary to prevent the eventual negative effects of the behaviors submitted" to its knowledge. The digital currency companies have called for regulation and a clear definition of the cryptocurrency business in Chile after some banks closed their accounts.

Regarding the Ministry of Finance's future regulation on virtual currency, Schulin-Zeuthen said that banks could open accounts for the exchange as long as "it is regulated and that there is information that is required to comply with the rules knowing the client and the origin and destination of the funds." "You have to be extremely careful because it could generate problems," Schulin-Zeuthen said.

Banco Central de Chile head Mario Marcel recently said there are "clear motives" to regulate cryptocurrencies, given that they "do not properly comply" with the current legislation for monetary instruments.