Chile has been witnessing a conflict between banks and crypto exchanges, one court case has resulted in ruling in favor of the exchange over a prominent Chilean bank.
The Court of Appeals has reached a verdict in favor of Orionx, a cryptocurrency exchange over the government-owned bank, Banco Estado. The bank must reopen the exchange’s account. In the closing of which, the court found the bank’s actions as “arbitrary and illegal”, and instead of rushing to such strict measures the bank should have first established “effective monitoring and control programs” before it proceeded to close the account.
Even though the court is sympathetic towards the fact the crypto transactions have implicit risks, it does not see enough reasons to suspect any company that invests in crypto as a source of criminal activity.
In the past month, Orionx has already sued six large banks for the abuse of their power. Other crypto exchanges, such as Buda.com and Cryptomkt are also experiencing similar difficulties, while some of the banks were ordered to reopen the accounts, the lawsuit hasn’t yet come to a close.
Numerous banks are denying that the closing of crypto-related accounts is an abuse of power or a worry about the nature of the activities, simply a lack of “concrete information,” as the Banco de Chile stated, which would allow the bank advance the means to justify their transactions. Another bank claimed that an abuse of power towards crypto is not an easy thing since it is “a practically decentralized market.”