Banking Drama Unfolds for Bitcoin Max
In a twist that could rival the latest Netflix series, two of Brazil’s largest banks, Banco do Brasil and Santander Brasil, have hit the ‘undo’ button and reopened the banking accounts of cryptocurrency exchange Bitcoin Max. This fascinating chapter began when a judge from the Federal District Court ruled that these banks had closed the accounts without notifying the exchange, a move that the court deemed ‘abusive conduct’ and a clear violation of consumer protection laws.
Judicial Orders and Penalties
As a result, the court swiftly ordered both banks to reopen the accounts in five days. Failure to comply would result in Santander Brasil facing penalties of up to 5,000 Brazilian reals (about $1,300), while Banco do Brasil would be looking at 20,000 reals (roughly $5,400). Leonardo Ranna, the legal representative for Bitcoin Max, has confirmed that the accounts were successfully reopened in the blink of an eye.
Not Over Yet: A Continuous Legal Battle
But before you grab the popcorn and assume this saga is wrapped up, think again! Portal do Bitcoin highlights that the legal fight is far from over. The recent court ruling is labeled as a ‘preliminary’ injunction, leaving room for more legal maneuvering. In addition to the account closures, Banco do Brasil has also frozen an additional 120,000 Brazilian reals (approximately $32,400) from Bitcoin Max’s funds, which the court has commanded be returned within 24 hours.
The Antitrust Investigation: Another Layer to the Plot
Adding a twist to the plot, Brazil’s antitrust regulator, the Administrative Council for Economic Defense (CADE), is investigating six major banks for possible monopolistic practices, including the actions of Banco do Brasil and Santander Brasil. The inquiry aims to determine whether these financial institutions systematically closed accounts of local crypto exchanges, leaving the exchanges in a deluge of complaints.
What’s Next for Brazilian Crypto Exchanges?
The storyline thickens as CADE recently sent out questionnaires to ten Brazilian crypto exchanges that have experienced similar account closures. These firms were asked to clarify their operations and detail whether they faced difficulties opening bank accounts or if banks simply shut their doors. As the Brazilian crypto scene navigates these choppy waters, one thing is clear: the battle for banking access is only just beginning.
