Court Orders Chilean Banks to Unfreeze A Crypto Exchange’s Accounts

As reported by Chilean local media, the country’s Court for the Defense of Free Competition (TDLC – Tribunal de Defensa de la Libre Competencia) has unfrozen bank accounts of a local cryptocurrency company called Buda that are held in Banco del Estado de Chile (Bancoestado) and Itau Corpbanca (Itau).

Buda, formerly known as Surbtc, sued ten banks earlier this month after the banks had frozen the exchange’s accounts and the accounts of two other companies dealing in cryptocurrencies. According to Diario Financiero, the ten banks cited in the suit include Bancoestado, Itau, Santander, Bci, Banco de Chile, Scotiabank, Bice and Bbva.

“[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 has also ordered the two banks should sign the contract with Buda “under the same terms of the contracts described between said parties previously,” the publication conveyed and quoted the court declaring, “the foregoing, in as much as the requested precautionary measure is necessary to prevent the eventual negative effects of the conduct submitted to this Tribunal.”

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 said that Buda accused the banks of executing: “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.”

Buda called on ABIF (Asociacion de Bancos e Instituciones Financieras), which is the country’s banking association, to issue a clear position on the crypto industry.