Crypto exchanges in Brazil may lose bank accounts
Crypto exchanges in Brazil may soon lose bank accounts. One of the largest commercial banks in the country has refused to comply with the agreement preventing the closure of accounts of such companies.
A large bank vs. a crypto exchange
According to a Latin American news magazine about the cryptocurrencies Criptonoticas, Banco Bradesco – one of the largest commercial banks in Brazil – refuses to honour any agreement preventing the closure of accounts that belong to the crypto exchanges.
At the end of December 2019, the Brazilian Administrative Council for Economic Defence (CADE) ruled that it is not illegal to close crypto exchange accounts. At the time, the authority explained it in this way:
“There is no evidence of antitrust offences as a result of the rejection by some banks of contracts with some crypto exchanges [platforms].”
The CADE ruling of December 2019 was also a departure from the previous position, which stated something completely different. In response, the Brazilian Association of Cryptocurrencies and Blockchain (ABCB) described the new ruling as full of “contradictions and omissions”.
But why is the bank afraid of the stock exchange? Banco Bradesco is afraid that digital assets can help money laundering.
In addition to Banco Bradesco and other commercial banks are also continuing the process of closing accounts belonging to the stock exchanges. Recently the Court of Justice in Sao Paulo also dismissed the appeal filed by Mercado Bitcoin – the Brazilian crypto exchange – against the Bank of Brazil after the latter’s decision to close bank accounts.
Bitcoin Max, another Brazilian crypto exchange, won a court battle to maintain its Santander Bank account.
The battle against the cryptocurrencies
The situation in Brazil is in line with the general trend in Latin America, especially in countries such as Chile. According to Criptonoticias, the Banco de Crédito e Inversiones, one of Chile’s commercial banks, has closed accounts belonging to the crypto exchange, Chilebit.
Admittedly, in April 2018. The Chilean Court of Appeal ordered the bank to reopen these accounts, but the fight against the crypto is still ongoing there and it is unclear how it will end. The exception in the region is Venezuela, which has its own digital currency, Petro, and looks at such solutions with a favourable eye.
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