Columbia Closes Accounts Of Its Main Crypto Exchange

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Colombian banks closed all the accounts of South American crypto exchange Buda.com, local news outlet Diario Bitcoin reported June 8, citing an email the company sent to its clients.

According to the email, the move was spontaneous, the banks confirming that the accounts had been closed without providing further explanation.

The crypto exchange reported soon after the news that it was experiencing technical difficulties, but would fully resume services June 13.

Buda’s Colombian CEO Alejandro Beltran confirmed the situation to local industry media Cripto247. He also named the three banks that blocked Buda’s accounts: Bancolombia, BBVA and Davivienda.

Cripto 247 links the banks’ decision to an internal letter from the Colombian financial control officer that was circulated in February. The letter was a reminder that banks are not authorized to interact with crypto platforms.

Nevertheless, Beltran told reporters he interprets the letter as a recommendation and that banks are in fact not obligated to comply.

On June 7, the same day banks closed Buda’s accounts, the Colombian Senate held a debate on the potential of cryptocurrency and blockchain in the country. The senator of Colombia’s Green Alliance party, Antonio Navarro Wolff, said that blockchain “could change the lives of Colombians”.

On June 6, 2018, the Colombian Senate published a Press Release in which they spoke about cryptos as a powerful tool for the development of the country.

The website of the Colombian Senate published the statements of Antonio Navarro Wolff, a Colombian legislator with a very pro-blockchain stance:

“Regulation is required to protect the consumer and the user, in many countries cryptocurrencies have been created to capture money; regulation should not impede the use and development in the country. Also, he reported that in Latin America over 100 projects are using this technology, including stock exchange transactions, electric energy information, land titling, state contracting, among others.

 

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