Brazilian Banks to Re-Open Frozen Crypto Accounts
November 1, 2018 11:53 am
Bitcoin Max is a Brazilian cryptocurrency exchange, two local banks closed its accounts in the country. The reports claim that Banco do Brasil and Banco Santander closed the exchange’s account without any explanation. Now, a Brazilian court has ordered these two banks to reopen the account of the Bitcoin Max. These banks have reactivated the accounts to avoid paying fines.
According to the report, Brazil’s Federal District Court was supposed to charge Santander with a fine of 5,000 Brazilian real ($1,350) and Banco do Brasil with 20,000 Brazilian real ($5,400). Leonardo Ranna, a lawyer representing Bitcoin Max said that all of the exchange’s accounts and have been restored.
In September 2018, the Administrative Council for Economic Defense (CADE) investigated Brazil’s six largest banks after they banned exchange’s account without any explanations. These banks also refused to discuss the decision. The report added that the monopolistic activities around the cryptocurrency space is limiting the action of brokers.
The investigation results are not yet revealed, and the ruling against Banco Santander may only be temporary.
The latest ruling by Ana Catarino, a judge with the higher court was based on Banco Santander’s unilateral decision of closing the exchange’s accounts without explanation. The bank claimed abusive conduct that is prohibited by consumer protection rules.
When Bitcoin Max’s account was shut down by Banco do Brasil, around $32,400 of the exchange’s money was stored in it. The Court judge later gave the bank a 24-hours to reactivate Bitcoin Max’s accounts or face a fine of about $540 a day.
Adriano Zanella, the Chief Executive Officer of Bitcoin Max, said that they were not aware of the account ban. During the investigation of CADE, the transparency body accused major banks for banning access to the financial system by cryptocurrency brokerages.