Chilean Court Orders OrionX To Halt Ongoing Crypto Operations

According to Chilean news outlet, Emol, the nation’s Supreme Court has ordered crypto exchange OrionX to close all of its active local bank accounts. This decision comes in wake of another order passed by Chile’s High Court that “guaranteed protection” to Orionx and forced local state-owned bank Banco del Estado to allow the firm to operate freely within the nation.

However, as per the latest judgement, the closure of OrionX’s bank accounts does not violate ”any rules of the Chilean constitution” and has thus been deemed to be a legitimate move.

What Are The Reasons Behind This Sudden Move?

In relation to the matter, the judge presiding over the case said that cryptocurrencies have “no physical manifestation” and thus can be considered to be assets with no intrinsic value. Additionally, since these digital currencies are not looked after by a government or centralized body, they cannot be technically classified as being “legitimate mediums for making payments”.

Other reasons cited by the court include:

  • Many altcoins are designed in such a way that banks and government agencies can be kept away from receiving detailed information on a firm’s crypto based transactions.
  • Digital assets such as Bitcoin and Ethereum can “potentially” be used to launder money as well as facilitate illegal activities associated with terrorism.

More On The Matter

As per official documents procured in relation to the litigation, it can be seen that the entire episode started back in April 2018, when local crypto trading platforms BUDA, Orionx, and CryptoMarket (CryptoMKT) applied to an appeals court so as to challenge two banks (Corpbanca and state-owned Banco del Estado) that had shut down their accounts.

Similarly, all through April and July, the Antimonopoly Court and the Court of Appeals ordered Itau Corpbanca and Banco del Estado to reopen the accounts of Buda and Orionx. However, since then, the government seems to have changed its tune and now wants the crypto exchanges to shut down for good.

Final Take

Such a move by the Chilean government indicates that there might be parties with vested interests that might be behind all of this madness. It now remains to be seen whether or not the Chilean crypto market is able to survive this latest onslaught.

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