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Orionx Loses Legal Battle in Supreme Court Ruling

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The Chilean Supreme Court has ruled against the crypto exchange Orionx, permitting a state-owned bank to close its account.

This is according to a report from local news outlet Emol.

The third chamber of the high court has rescinded the ruling taken in July that had made sure of protection to Orionx and compelled local state-owned bank Banco del Estado to reopen its account. The new judgement by Emol remarks that the bank acted in the right manner and did not breach any rules of the Chilean constitution.

In the ruling, the judge also stated that cryptocurrencies “have no physical manifestation and no intrinsic value.” The document said that they are controlled neither by government nor by a firm, citing the features as reasons for letting banks refuse services to the exchange. The court decision elucidates that the nature of cryptocurrencies keeps banks from receiving meticulous data on transactions, customers and companies that engage with the assets.

In addition, the supreme court raised the issue of the illegal use of cryptocurrencies, claiming that crypto was involved in money laundering and financing of terrorism. Given all these, the bank’s closure of Orionx’s accounts was found legal.

It was not immediately clear if the court’s decision is valid to other two crypto exchanges that have filed complaints this year regarding identical closures.

The litigation began in mid-April 2018, when local crypto exchanges BUDA, Orionx, and CryptoMarket (CryptoMKT) applied to an appeals court to oppose two banks, private Itau Corpbanca and state-owned Banco del Estado, that had shut down their platforms’ accounts.

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