Tuesday, April 23, 2019

Brazilian Crypto Exchange Wins Battle Against Bank

Brazilian banks have done it again this time. However, judicial law seems to choose the crypto side. 

Crypto Company Loses Its Bank Account Without Warning

As reported in Portal Do Bitcoin, Mercado Bitcoin– one of the country’s crypto exchange company– currently received a notice from Banco Sicoob that their accounts will be up for closure.

According to the company, the bank did not give any reasons behind the sudden closure of their account. This event led to the crypto company to take legal action and made an appeal against the bank’s decision.

Taking The Side

As the case progressed in the court, the Court of Justice of Rio De Janeiro, recently decided to side with Mercado Bitcoin and denied the appeal of Banco Sicoob to forfeit and close the bank accounts of the company.

According to Judge Regina Lucia Passos from 21st Civil Chamber of the Court of Justice of Rio de Janeiro, the Central Bank of Brazil has still no prohibitions in transacting with cryptocurrencies, as of now. Due to this, the decision of Banco Sicoob to close the accounts of a crypto company– without any clear reasons–seemed to be a manipulative tactic used by the bank against the company.

Violation of Consumers Act

As also explained by her, as a matter of fact, Banco Sicoob violated resolution No. 2,025/93 of Banco Central do Brasil– this resolution explains that customers of financial institutions must know the reason behind their closed account.

Although this decision made by the court is still not final, people are already exclaiming with excitement as the freedom for cryptocurrencies continues to fight its way against the regulations of the bank.

Bitcoin Max Versus Banks

Just like in November 2018, another crypto company in Brazil had the same problem with banks closing their accounts.

Bitcoin Max also brought their case filed in the court, accusing Banco do Brasil and Banco Santander of violating their consumer protection regulation after the banks closed their accounts without their prior knowledge.

These sudden actions were followed by a lot more cases filed from other crypto companies, explaining that they also experienced the same bank treatment.

Organizations that protect cryptocurrencies already filed petitions for the banks’ to be investigated regarding this unjust treatment.

Preventing Money Laundering

Still, the Brazilian banks firmly stand that they were only protecting the financial aids of their customers through closing the accounts of crypto companies– wherein money laundering is said to be evident.

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