Colombian banks close all accounts of the crypto exchange Buda

Colombian banks close all accounts of the crypto exchange Buda
Colombian banks close all accounts of the crypto exchange Buda

Colombian banks closed all accounts of the South American crypto exchange Buda. This is reported by the local publishing house Diario Bitcoin, referring to the e-mail letter sent by the company to its customers.

According to the report, this step was spontaneous, the banks confirmed that the accounts were closed without further explanation.

The crypto exchange announced this soon after the news that it is experiencing technical difficulties but will resume work on June 13.

The general director of the Buda branch in Colombia, Alejandro Beltran, confirmed the seriousness of the situation for the local media. He also named three banks that blocked Buda’s accounts: Bancolombia, BBVA, and Davivienda.

The source linked the banks’ decision with an internal letter from the Colombian financial controller, which was circulated in February. The letter was a reminder that institutions are not allowed to interact with crypto exchange platforms.

Nevertheless, Beltran told reporters that he interprets this letter as a recommendation and that banks are not actually required to comply with this decision.

After the incident, the Colombian Senate held a discussion on the potential of the cryptocurrency and Blockchain technology in the country. Senator of the Green Alliance party Antonio Navarro Wolf said that the blockchain “can change the life of Colombians”.

As reported by Cointelegraph in March, Buda already faced legal problems when a number of Chilean banks closed their accounts with two other cryptocurrency platforms. Then, three platforms filed a lawsuit to withstand the decision.

Later in April, the Chilean antimonopoly court took the side of Buda and ordered the resumption of accounts in two large Chilean banks.