The administrative Council for economic defense (CADE), performing the functions of competition authorities in Brazil and subordinated to the Ministry of justice, allegedly initiated an investigation Tuesday to find out, closing the largest banks of the country accounts brokers trade with bitcoin.
According to Reuters, the investigation of CADE began at the request of the Brazilian Association of the blockchain and cryptocurrency, which received several complaints. One of them says that Banco do Brasil was closed by the local crypto-trading platform Atlas Quantum.
As part of the ongoing investigation, CADE will check the major registered banks, including Banco do Brasil, Banco Bradesco, Itaú Unibanco Holding, Banco Santander Brasil, and Banco Inter necatorosis and cooperative Bank Sicredi.
Reuters refers to communication CADE, which States: “Leading banks impose restrictions or even close access to the financial system, the cryptocurrency brokers”. Banks supposedly answered that they were forced to close the accounts due to the lack of important customer data that will be required in accordance with laws to combat money laundering in Brazil.
The examiner reported by Reuters: “Illegal activities must be stopped, and the banks have to take restrictive measures if they revealed the indicators of the Commission of the offence by the account holder. However, it seems unreasonable on the part of banks to apply restrictive measures on the grounds that the company operates in the crypto-currency sector, without examining the level of compliance and anti-fraud practices used by each individual brokerage firm”.
After the announcement of the beginning of the investigation of the Banco do Brasil, the largest Bank in Latin America by assets, told Reuters that he “adheres to practices based on moral principles and respect for free competition”. Itaú Unibanco said that he was “sure his behavior will be recognized as lawful.”
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