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Chile's Appeal Court Overrules Crypto Bank Account Shut Down

In a recent report, Banco Estado was forced by Chile’s appeal court to allow Orionx, the digital trading company, to continue operating on its bank account. On the 12th of July, the court ordered the bank to allow Orionx to continue depositing assets in its account.


Ruling

Orionx filed for an appeal against the bank with the country’s Court of Appeals, stating that the bank had shut down its account earlier this year. According to the appeal, which was accepted, the bank suspended its deposit account due to uncertain regulations regarding digital currencies and their trading operations.

After the appeal, Orionx was allowed to resume its bank deposits within the bank as per court ruling. As the court stated, by shutting down the company’s account, it was directly violating Chile’s constitution and Orionx’s legal rights. Banco Estado was then forced to resume the company’s right to use its account.

Having already shut down another account belonging to Buda in April, another cryptocurrency exchange, both Banco Estado and Corpbanca were ruled against and ordered the country’s anti-monopoly court.

Mario Marcel, Chile’s reserve bank director, stated the financial institution was discussing the possibility of creating a framework under proper regulations to minimize on the many issues digital trading sees.

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