Brazilian Banks Reopen Crypto Exchange Accounts to Avoid Fines

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Two major Brazilian banks have complied with court orders and resumed banking services of a local cryptocurrency exchange that had its accounts closed. The initial decision by the banks to deny bank accounts to cryptocurrency exchanges was challenged in the court and a preliminary decision was awarded in the favor of the exchange.

Banco do Brasil and Santander Brasil were ordered to reopen the accounts of cryptocurrency exchange Bitcoin Max by the Federal District Court. The court termed the unilateral action of banks as abusive conduct that violates customer protection laws and then ordered the banks to re-open the accounts within five days or face up to a BRL 20,000 fine (USD 5,400).

According to the exchange’s lawyer Leonardo Ranna, the banks quickly reopened the accounts after the decision. Banco do Brasil had also frozen BRL 120,000 of the exchange as well and the court ordered the two banks to make them available in 24 hours.

While the exchange may celebrate this decision, it is only a preliminary outcome and the legal process will continue in the court. Banks across Latin America have been blocking the accounts of cryptocurrency exchanges but courts have intervened and ordered the banks to reopen in many cases.

Cryptocurrency regulations and oversight are being planned in the country and the Administrative Council for Economic Defense (CADE) recently sent a mandatory questionnaire to all operation cryptocurrency exchanges to fill. The questionnaire had basic questions about the operations of these exchanges and the CADE will reportedly study these revelations to come up with appropriate regulations for the market.

 

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