Brazilian economic watchdog Administrative Council for Economic Defense (CADE) has announced that it has sent ten cryptocurrency exchanges and an OTC trading a detailed questionnaire to fill and they have until 19 October to answer it or face a fine up to USD 25,000.
While the announcement of the questionnaire was made earlier, according to Portal do Bitcoin it was actually delivered to the exchanges on 1 October. The move follows detailed investigation requested by local blockchain and cryptocurrency association Brazilian Association of Cryptocurrency and Blockchain (ABCB) into the crypto-related projects. The call by ABCB was made to ensure the transparency of the matter.
While the issue seems one-sided and biased towards cryptocurrencies, it is apparently not so as CADE has also probed banks that are trying to damage the operations of these cryptocurrency exchange by restricting their accounts. The investigator even said the banks were “imposing, restricting or even prohibiting… access to the financial system for cryptocurrency brokerages”.
But for a better understanding of their operations, exchanges are now being asked to fill a mandatory questionnaire regarding their operations and submit it within time. The form was sent to all of the top cryptocurrency exchanges operating in the country including Waltime, Brazilex, BitcoinTrade, Mercado Bitcoin and Foxbit.
According to the CADE notes:
“In accordance with art. 40 of the Law 12,529 / 2011, the refusal, omission or unjustified delay of the requested information or documents constitutes an offense punishable by a daily fine of BRL 5,000.00 (five thousand reais) [about USD 1,270], and may be increased by up to twenty (20) times, if necessary to ensure its effectiveness, because of the economic situation of the offender.”
The questionnaire asks several questions to the cryptocurrency exchanges including descriptions of their operations in Brazil, whether banks have been shutting down their accounts, whether they have suffered losses because of accounts being shut down, the measures they have taken for security and transparency including Anti Money Laundering (AML) and Know-Your-Customer (KYC) and whether they have refused to serve clients before. Finally, the questionnaire ends by saying their answers will be kept confidential.
The questionnaires are expected to help the government regulate the industry better.
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