The Chilean Court Of Appeals has given down a decision in favor of crypto exchange Orionx and has ordered banks to restart trading with the platform. As per the news, the Fourth Chamber of the Court of Appeals of Santiago accepted the appeal from Orionx filed against the state-run Chile State Bank, Banco del Estado de Chile (BEC), Itau Corpbanca and six other banks. The cryptocurrency exchange accused these banks of using their power to quash its crypto payment business.
All these banks closed the deposit account of the crypto exchange in late March this year citing lack of “regulatory recognition of virtual currency trading.” The banks believed that the steps they were taking were legal and justified.
Court orders the banks to reverse original decision
As per the new ruling, the Court has called all banks to reverse their original decision. According to the Court, the decision is an “arbitrary and illegal action, which constitutes a deprivation of the right protected by Article 19 No. 2 of the Political Constitution of the Republic, that is, the right to equality before the law.” The Court has ordered the BEC and the other banks not to treat cryptocurrency exchanges differently from other businesses.
Decision spurs positive response in Chile
It is not the first time that the Chilean court has given a ruling against the major banks of the country. In late April this year, the banks closed accounts of two other cryptocurrency exchanges including CryptoMarket and Buda apart from Orionx. The anti-monopoly court of Chile ordered both BEC and Itau Corpbanca to reopen the closed accounts of Buda. The deposit accounts of CryptoMarket were reopened albeit temporarily that time. Later, CryptoMarket opened a trading account with Bancoestado.
According to cryptocurrency experts, this move will likely produce a positive response in Chile and will at least boost the confidence of crypto investors. A couple of months ago, Mario Marcel, the president of Central Bank of Chile, declared that they are thinking of developing a regulatory framework for virtual currencies to ensure better management of risks that are associated with crypto trading.