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Brazilian Banks Are Blocking Bank Accounts Because Of Cryptocurrencies

Have Brazilian banks blocked the accounts of Bitcoin exchanges? Various crypto exchanges have been accusing the South American financial institutions for quite some time.

Accordingly, banks have been froze or restricted accounts of cryptocurrency exchanges since 2015 for no apparent reason. The payment institutions in turn claim that the cause was the lack of transparency of the exchanges in the commercial registers.

Anyone opening an account in Brazil must clearly tell the bank what the purpose is for it that’s the standard practice there. Banks have apparently found gaps in the account opening of various Exchanges. The consequence was the repeated closure of accounts, on which the crypto exchanges in turn loudly expressed themselves so loudly that the Brazilian economic institute CADE (Administrative Council for Economic Defense) sees itself now forced to roll up activities.

Both Parties Must Explain Themselves

The banks had to declare themselves in the past for the closure of the accounts. Now it’s time for the crypto exchanges. The government institute has sent comprehensive list of questions. The non-response would result in a fine of up to $25,000. In addition to the general description of the events, the questionnaire also includes the potential economic damage that the Bitcoin exchanges suffered as a result of account lockouts. It still does not seem clear what position the government will take on the allegations. As in many parts of the world, the legal and banking system seems to be in the process of finding its own and yet not knowing exactly where digital currency and trading in the legal system will take place.

Banks And Cryptocurrencies

Bitcoin and Blockchain, as an alternative to the banks: more and more blockchain applications are implemented in the banking system itself. Bitcoin traditionalists and Cypherpunks would have a good reason to regard this as supporting the wrong side.

There is also strong resistance, as for now in Brazil. Simplification as “the banks” and “the crypto space” would not do justice to the complex matter. Nevertheless, it is often observed that banks are particularly against an unregulated Bitcoin space.