Brazilian cryptocurrency exchange Mercado Bitcoin have had their business account reinstated following a directive by the Brazilian court
The court was presiding over the case between Mercado Bitcoin and Banco Sicoob, who were disputing the closure of the crypto exchanges checking account.
Judge Regina Lucia Passos ruled in favor of Mercado Bitcoin, citing that the bank has not provided any justifiable reason for why the bank account was frozen in the first place. The district court in Barra da Tijuca had previously granted the exchange the consent to keep its account open.
Judge Passos concluded that not even Brazil's central bank have outlawed crypto trading, saying that closing Mercado Bitcoins bank account with no real grounds, was an infringement of Banco Central do Brasil's resolution No. 2,025/93, which reiterates that a clear and solid basis for this action is required. Passos also made reference to circular No. 3,788/16 which states that should a checking account be scheduled for termination, the account holder has the right to receive notification with references that explain why the account would be terminated.
The ruling is a success for Mercado Bitcoin exchange. Brazil continue to take action against banks for closing crypto bank accounts. In 2018 the Federal District Court ordered Banco do Brasil and Banco Santander to reopen frozen accounts associated with crypto trading platform Bitcoin Max. The courts have described the banks actions as abusive and a breach of regulations on consumer protection.
All-in-all, a small victory for cryptocurrency trading in Brazil.