The Fourth Chamber of the Court of Appeals, Santiago, Chile has given a ruling in favor of crypto exchange, Orionx against one of the largest banks, Banco Estado for closing its account. The ruling has issued orders to this government-owned bank to reopen the crypto exchange’s account.
As per the ruling, the court mentioned that Banco Estado’s action of closing Orionx’s account is an arbitrary and illegal action. It is a deprivation of the right that’s protected by the right to equality according to Article 19 No. 2 of the Political Constitution of the Republic.
The bank with this action prevented Orionx from developing an activity which although not regulated, does not stop the bank from adopting less rigorous security measures such as controlling and developing effective monitoring before the final closure of the account.
A couple of lawsuits have been filed against Chile’s major banks with the TDLC (Tribunal de Defensa de la Libre Competencia). Last month, the Orion exchange sued six major banks for quashing its crypto payment business and abusing their power.
Earlier, Buda.com, another crypto exchange filed a lawsuit against ten banks for closing its accounts along with the accounts of Cryptomkt crypto exchange. The antitrust court in its ruling directed three banks, including Banco Estado to re-open Orionx’s and other exchanges’ accounts while the lawsuit is still pending.
Bitcoin news reported that this Friday, these five banks have responded to the lawsuit filed against them before the TDLC. These banks are Banco de Credito e Inversiones (Bci) Santander, Banco de Chile, Itau, and Scotiabank. The exchanges raised allegations against these banks stating that they abused their dominant position by either closing their accounts or denied opening them for crypto exchanges. In its response letter, Santander mentioned that the use of a current account won’t be essential for the cryptocurrency traders.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]