Unlike Venezuelan President Nicolas Maduro, who has worked hard to develop the petro, a ruling by the Chilean Supreme Court on the same continent may indicate that the cryptocurrency will be permanently sidelined by the country.

According to a CCN report on December 6, the Chilean Supreme Court has rejected the complaint of the cryptocurrency exchange Orionx and agreed to close the account opened by the exchange at Estado Bank.

Earlier this year, Chile’s Itau Corpbanca, Bank of Nova Scotia and state-owned Banco Estado closed the bank accounts of digital asset platforms Crypto MKT, Buda and Orionx . "Based on the powers provided in the account contract, the bank will close the account opened by the cryptocurrency exchange Orionx Bank," wrote Estado in a statement.

The move was opposed by exchanges such as Orionx and filed a lawsuit against six of the country's major banks, saying the banks' closure of their bank accounts was an abuse of power. In mid-July, a Santiago court issued a ruling requiring Banco Estado to reopen the accounts of the cryptocurrency exchange Orionx on the grounds that Banco Estado “has taken arbitrary and illegal actions that constitute a deprivation of the rights enshrined in Article 19, paragraph 2, of the Political Constitution of the Republic.” protection, the right of all to equality before the law".

Now, however, the Chilean Supreme Court disagrees with the ruling made by the appeals court. The Chilean Federal Supreme Court stated that the closure of the accounts of cryptocurrency exchanges by state-owned banks is neither illegal nor arbitrary.

At the same time, the Federal Court also stated that cryptocurrencies have no physical form and intrinsic value, and have not been recognized by the government. These characteristics prevent banks from effectively managing cryptocurrencies in accordance with existing rules.

Although Orionx is only one of many exchanges, the distrust of cryptocurrency exchanges expressed by the Chilean Supreme Court has largely revealed the fate of cryptocurrency exchanges in Chile. Compliant business methods will also face the risk of being closed by the bank.

It is not uncommon for cryptocurrency exchange accounts to be closed. In mid-September this year, Brazil’s Administrative Council for Economic Defense (CADE) investigated the cryptocurrency business of six major banks in the country, and some cryptocurrency exchange accounts were closed. closure.

The reason may be related to the arrest of 12 criminals by the Brazilian Federal Police not long ago who assisted gangs in using Bitcoin to launder money.