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Homepage / News June 12, 2018 77 views

Banks Shut Down Accounts for Cryptocurrency Exchange in Colombia

Banks Shut Down Accounts for Cryptocurrency Exchange in Colombia

Compared to numerous other countries, Colombia is a tiny fish in the cryptocurrency sea, but interest is rising. Dark clouds, nonetheless, are appearing as 1 cryptocurrency exchange,, has had their accounts closed by every bank.

Bitcoin in Colombia

Similar to most nations, Colombia has no active Bitcoin regulation. That doesn&#8217t mean this business is fully frowned upon at this point in time. So far, the government has permitted Bitcoin to thrive, up to a particular extent. That predicament is now coming to a alter, albeit it seems to be due to a selection by the country&#8217s banks. Back in February, the Colombian Economic Supervisor advised all banks that they had been not authorized to interact with cryptocurrency organizations.

This is not a constructive development for the Bitcoin business in Colombia. In truth, it can be quite troublesome for any&nbspof the exchanges or wallet solutions operating in the country. Nevertheless, this informal declaration by the&nbspColombian Financial Supervisor has only impacted a single entity so far: the cryptocurrency exchange. So far, Bancolombia, BBVA, and Davivienda have all&nbspclosed&nbspthe associated accounts for cryptocurrency exchange in Colombia has had its access to banks shut down.

What Comes Next?

Even although this decision seems final, that might not be the case. The Colombian Senate has been debating as to how they regulate cryptocurrencies and blockchain technologies. There seems to be genuine support amongst government officials for each technologies.

The chief proponent for blockchain technologies and cryptocurrency seems to be Senator Antonio Navarro Wloff, who said that blockchain technology could change the lives of Colombians by &#8220giving it use in the administration of the protection of rights, of innovators, the safety of the Electoral Method, the intelligent contracting, management of public services, among other people, could use this technology in the future.&#8221

It need to be pointed out that this situation is not exclusive. Several banks across the world have denied access to cryptocurrency exchanges or not let their consumers to acquire virtual currencies through credit and debit cards. had their&nbspaccess to banks shut down in Chile earlier this year, but the Chilean banks also targeted other cryptocurrency exchanges as effectively. A legal battle at some point overturned that selection.

South American countries stand to obtain a lot from cryptocurrencies. Their worldwide nature can counter national inflation in countries such as Colombia, Chile, Brazil, and other folks. In reality, the existence of cryptocurrency in some nations, such as Venezuela, is assisting folks in fact stay alive due to harsh economic circumstances. As for Colombia, it&#8217ll be intriguing to see if the national government gives their approval to crypto and blockchain technology.

What do you consider the Colombian banks shutting down accounts linked with Let us know in the comments under.

Pictures courtesy of Shutterstock.

Tags: banks, bitcoin, Colombia, cryptocurrency, exchange, regulation

Published at Tue, 12 Jun 2018 00:15:36 +0000