Chile
The Tribunal de Defensa de la Libre Competencia (TDLC) has concluded a legal dispute between leading cryptocurrency exchanges Buda.com, CryptoMKT, and OrionX and several Chilean banks, rejecting the crypto operators’ demand. The exchanges initiated legal action after experiencing account closures and denied account openings by the majority of banks in March 2018, arguing this concerted action hindered their operations.
In 2019, Buda.com emphasized the broader market harm caused by account closures and the importance of setting a precedent against unilateral decisions by powerful entities in Chile. However, banks defended their actions by citing non-compliance with account opening requirements and lacking anti-money laundering and counter-terrorist financing policies by the exchanges.
The TDLC’s verdict dismantled all arguments presented by the exchanges. It found no evidence of collective conduct or equivalent action line among the banks. The tribunal noted that prior to account closures, four banks were willing to engage with at least one of the three exchanges, suggesting independent commercial decisions rather than a concerted effort.
The TDLC also deemed cryptocurrency trading activities as not indispensable to the exchanges’ operations at the time of the dispute and not part of the formal exchange market. It justified banks’ refusal to open accounts and subsequent closures based on risk-based approaches aligned with anti-money laundering and counter-terrorist financing regulations.
Following the verdict, Jaime Bunzli, CEO of Buda.com, expressed the decision as a significant setback for Chile’s fintech industry and hinted at future action in the Supreme Court. FinteChile’s executive director, Ángel Sierra, acknowledged the tribunal’s decision but pointed out a contradiction between the verdict, market evolution, and the recently approved Fintech Law, emphasizing that account providers must justify closures or service denial objectively, a step seemingly overlooked in this case. Despite the defeat, the platforms are considering an appeal to the Supreme Court.
