Earlier in May, a Chile court had passed an order which stated that three major banks can reopen their crypto exchange accounts. The banks, then, resumed all the cryptocurrency transactions from the accounts.
The court’s decision had opened up many disputes with several banks hovering around the policies and judgment over the court’s decision. The disputes have been going on for a while between the banks and the cryptocurrency exchanges and in the middle, the court has finally passed the order in Chile.
One of the appeals courts finally adjudged in favour of one crypto exchange, against one of the largest banks in the country. It is reported that five major banks have separately responded to the lawsuits against the court.
Court of Appeals
As reported in local media, the Fourth Chamber of the Court of Appeals of Santiago has ruled over in favour of crypto exchange. According to the news published on Thursday, the ruling order states that only government-owned banks in Chile are about to reopen the exchange’s account.
The court answered that the bank’s action constitutes “an arbitrary and illegal action”, which indeed is a destitution, or non-accomplishment of necessities of the right protected by Article 19, No. 2 of the Political Constitution of the Republic. This information was quoted by La Tercera on the ruling.
The bank is preventing Orionx from developing any kind of activity that does not prevent the bank from adopting, less intensive security measures. The bank decides to take actions by closing the exchange’s account, although there is no such regulation exists. This was reported by Emol news outlet.
Pointing out the risks inherent with the crypto transactions, the court customized them as new forms of investment and payment, which need not be identified with the commission of criminal acts.
The response of banks to lawsuits
A few lawsuits have been filed against the country’s major banks with the help of Court for the Defense of Free Competition (TDLC – Tribunal de Defensa de la Libre Competencia).
On Friday, Diario Financiero reported five banks that have responded to the lawsuit. These are – Santander, Banco de Chile, Banco de Crédito e Inversiones (BCI), Scotiabank, and Itaú. The exchanges allege that they abused their dominant position in a wrongly and destitute manner when they either closed the accounts or denied opening them for the crypto exchanges.
In its current letter, Santander wrote about the use of a current account would not be much essential for the traders of digital currency. It was conveyed by the publication itself. BCI denied the charges. It stated that it would be difficult to attempt to do so, given the fact that the crypto is a practically decentralized market, with numerous players.