The Supreme Court Of Chile Recognized Legal The Blocking Of Orionx’s Accounts
The Supreme Court of Chile rejected the appeal of Orionx representatives about the blocking of the platform’s accounts by the state bank Banco Estado.
The Supreme Court ruled that Banco Estado did not violate the provisions of the Constitution and closed Orionx’s accounts legally. The court decision also states that cryptocurrencies have no material expression or intrinsic value and are not controlled by the government. In this regard, according to the judge, the bank knows nothing about the financial activities of Orionx and its customers, which in turn prevents the financial institution to comply with legal norms.
In addition, the judge said that cryptocurrencies were used for illegal activities, in particular, for money laundering and terrorism financing.
The decision of the Supreme Court is fundamentally different from the July’s ruling of the Santiago Court of Appeals. Then, the court determined that the decision to close the account was a violation of the right to equality before the law. The judge added that the business using cryptocurrencies in its activities is not necessarily connected with crime.
Recall that in early April, Chilean banks Itau Corpbanca, Bank of Nova Scotia and Banco del Estado de Chile without any explanation blocked the accounts of three cryptocurrency exchanges: Buda, Crypto MKT and Orionx. In this regard, the exchanges filed appeals.
In May, Tribunal de Defensa de la Libre Competencia (TDLC) ruled in favor of Cryptomkt and Buda, obliging banks to restore the accounts of the exchanges for the time of the investigation.