Chile’s court has ordered two of the country’s main banks to re-open the accounts of a cryptocurrency exchange after it sued 10 banks condemning them for anti-competitive behavior. The two banks must enter establish a new contract with the crypto exchange, having the same terms and conditions as before the account termination.
Court Side with Crypto Exchange
According to local media, Chile’s Court for the Defense of Free Competition (TDLC – Tribunal de Defensa de la Libre Competencia) has ordered Banco del Estado de Chile (Bancoestado) and Itau Corpbanca (Itau) to re-open the accounts of local cryptocurrency platform, Buda, during its litigation against 10 banks.
Earlier this month, Buda (previously named Surbtc) filed a lawsuit against 10 banks after they shut down the exchange’s accounts, as well as the accounts of Orionx and Cryptomkt exchanges. According to Diario Financiero, the other banks named in the suit include Bancoestado, Itau, Santander, Bci, Banco de Chile, Scotiabank, Bice, and BBVA.
The news outlet reported on Thursday’s ruling:
”[The ruling is] an unprecedented precautionary measure binding Bancoestado and Itau to enter into a new current account contract with the operator [Buda], while the case is proceeding.”
The court also stipulated in its order for the two banks that they have to resume the contract it had with Buda “under the same terms of the contracts described between said parties previously,” the publication quoted the court stating the following, “the foregoing, inasmuch as the requested precautionary measure is necessary to prevent the eventual negative effects of the conduct submitted to this Tribunal.”
Banks Facing Lawsuits
Buda “also asked the court to punish the 10 banks with the maximum of the fine established in DL211, with costs, and ordered [them] to stop the practice indicated, without prejudice to other measures deemed appropriate to the effect,” the news outlet described that Buda accused the banks of being responsible of:
“Anticompetitive behavior consisting of abuse of their collective dominance position and by engaging in an abusive exploitation that excludes their dominant position…with the purpose or effect of preventing, restricting and hindering competition in the affected markets.”
Last month, after several Chilean banks closed their accounts, Buda and Cryptomkt requested the country’s banking association (ABIF – Asociación de Bancos e Instituciones Financieras) to issue a clear stance concerning the crypto industry.