Brazilian banks ordered to reopen the accounts of crypto exchange or pay fines

31 Oct, 2018
by Richard Allen
Brazilian banks ordered to reopen the accounts of crypto exchange or pay fines

Two major Brazilian banks, Santander and Banco do Brasil, have reopened their doors to cryptocurrency exchange Bitcoin Max, local news agency Portal do Bitcoin reports.

The decision to reopen the bank accounts of Bitcoin Max was made by the Federal District Court. According to the judge, the banks failed to notify the exchange about its account closures, which qualifies as “abusive conduct” and violating consumer protection rules. The banks were ordered to unlock the account within five days. Non-compliance would cost Santander up to $1,350 and Banco do Brasil $5,400.

The exchange’s lawyer stated that its accounts with the banks “have been restored.” While the decision is a definite win for the exchange, the ideal may not be over yet. The lawsuit against Baco Santander saw the bank comply because of a grant of early protection of urgency, something that’s similar to an injunction.  The injunction had previously been denied, which resulted in Banco’s lawyer file an appeal to a Federal District Court Judge.

In addition to closing the exchange’s account, it's been reported that Banco do Brasil also held $32,000 of the exchange’s fund. A lawsuit was filed on September 12 but was initially denied. Judge Fátima Rafael, however, gave the bank 24 hours to reopen Bitcoin Max’s account or pay a fine of $540 a day.

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