Banco Bradesco, Brazilian bank increased the closure of crypto exchange accounts
Crypto exchanges in Latin America are becoming increasingly fierce with domestic banks, with many banks turning to block trade with exchanges. Throughout Latin America, cryptocurrency exchanges continue to have difficulty maintaining banking relationships.
Banco Bradesco – one of Brazil’s major commercial banks, is refusing to honor any agreement that prevents the closure of crypto exchange accounts, according to Hispanic cryptocurrency news outlet Criptonoticias.
Bradesco appears to have won the battle against Brazilian Association of Cryptocurrency and Blockchain firms (ABCB), a group of domestic cryptocurrency exchanges whose case had been referred to an external adjudicator after it and other banks closed members’ accounts last year.
Banks claimed at the time that they were concerned about possible money laundering violations at Brazilian exchanges.
Per Criptonoticias, the case of ABCB is referred to the Administrative Council for Economic Defense (CADE), the Brazilian competition regulator, which ruled in favor of the banks. The December CADE ruling is a departure from the previous position that such actions include sufficient anti-trust elements. In response, ABCB described the ruling as “full of darkness, contradictions, and omissions.”
The association also disputed CADE’s authority to rule on cryptocurrency-related matters and hoped to reach a direct agreement with the banks.
For Banco Bradesco, digital assets are at serious risk of money laundering. Therefore, the bank is said to not comply with any requests from ABCB regarding account closure for cryptocurrency exchanges.
In addition to Banco Bradesco, other commercial banks are also moving forward with the closure of accounts belonging to cryptocurrency exchanges. Sao Paulo’s Court of Justice, recently rejected an appeal of Mercado Bitcoin – a Brazilian cryptocurrency exchange, against Brazil Bank after the decision to close their bank accounts.
One of Chile’s commercial banks has shut down accounts belonging to crypto exchange, Chilebit
Meanwhile, Banco de Crédito e Inversiones in Chile, appears to have pulled out of the Brazilian bank book. They have moved to close the account of the first cryptocurrency exchange, Chilebit.
Per letter sent to the exchange in mid-December, the bank stated that Chilebit had 15 days to complete transactions with the bank – and gave no reason for its decision.
Although there is a glimmer of hope for cryptocurrency exchanges wailing about their fate in Latin America, however: Spain’s Santander was sued by the Brazilian exchange of Mercado Bitcoin in 2018. Exchanges Chilean electronic translation received a denial when the Court of Appeals requested banks to reopen their accounts. At the time, crypto-related parties in the country resisted the trend of banks refusing to provide bank support to cryptocurrency exchanges.
However, in December 2018, the Chilean Supreme Court ruled in favor of the Chilean state bank, justifying the decision to close the account of the cryptocurrency exchange Orionx.
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