Countries around the world are stepping up regulations on cryptocurrencies in various forms. Add Chile to that list.
“Chilean trading platforms Buda, Orionx and CryptoMarket are trying to find ways to continue operating in Chile after Itau Corpbanca, Bank of Nova Scotia and state-owned Banco del Estado de Chile closed their accounts last month with no explanation,” reports Bloomberg. “The exchanges have complained to an appeals court, which agreed to hear their case, but the bank accounts remain closed.”
Although that news was reported last Friday, bitcoin, the largest digital currency, continued a two-day surge, that saw it reclaim the $8,000 level.
Related: $8K Bitcoin Rally: Hedge Fund Sees Big Upside
Recently, the Bitcoin Dominance Index has been rising, confirming the dominant perch of the cryptocurrency. After bitcoin, the largest cryptocurrencies are Ethereum, Ripple, Bitcoin Cash and Litecoin.
Chile Not Alone in Bitcoin Crackdown
Chile is far from the only country to take a heavy-handed approach to digital currency regulation. Earlier this month, the Reserve Bank of India (RBI) said it is banning banks from dealing digital currencies.
“In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling [virtual currencies],” said RBI, India’s central bank, in a statement.
Additionally, some of Canada’s largest banks are banning or limiting transactions in cryptocurrencies.
“Chile’s cryptocurrency market is small but burgeoning,” according to Bloomberg. “Entrepreneurs created digital coins Chaucha and Luka, whose names play off local slang used for money, while locally-based exchanges like Buda and CryptoMarket operate across Latin America. Buda traded about $1 million per day before losing its bank account, compared with about $2 billion for the world’s biggest exchanges.”
Related: Bitcoin, Ethereum, and Ripple Price Prediction
Chile is a potentially lucrative market for digital currencies because it is one of the wealthiest countries in Latin America.
Bitcoin’s rally above $8,000 comes just a couple of weeks after the cryptocurrency committed a death cross, where its 200-day moving average fell below its 50-day line. The death cross is normally bearish, but it needs to be validated, something bitcoin did not do.
For more information on the cryptocurrency market, visit our Bitcoin category.