Crypto Exchanges in Brazil May Soon Lose Bank Support

News / 11.01.2020

In Brazil, a commercial bank known as Banco Bradescohas shunned an agreement preventing the closure of cryptocurrency exchanges’ accounts. The bank did not act in accordance with the agreement and such an attitude could mean that it is looking forward to cutting ties with cryptocurrency exchanges.

Banco Bradesco is one of the leading commercial banks in the country; therefore, its decision to ignore such an agreement is not good for the cryptocurrency domain in Brazil.

Last month, a ruling by the Administrative Council of Economic Defense (CADE) of Brazil said the withdrawal of bank services offered to cryptocurrency exchanges was not against the law. However, while reacting to the ruling, the Brazilian Association of Cryptocurrencies and Blockchain (ABCD) said it consists of “darkness, contradictions, and omissions.”

Banco Bradesco thinks that cryptos present risks of money laundering and decided to shun any agreement preventing the closure of cryptocurrency exchanges’ accounts.

Besides, in Chile, a bank is trying to do the same as BancoBradesco. The Chilean bank, Banco de Crédito e Inversiones, is making moves towards the closure of a cryptocurrency exchange. The cryptocurrency exchange known as Chilebit is a pioneering exchange in the country.

Last month, Banco de Crédito e Inversiones sent an official letter to Chilebit giving the exchange 15 days to conclude its dealings. However, the bank refused to include why it had reached such a decision.

Cryptocurrency exchanges across Europe are likewise encountering regulatory problems as the imminent AML regulations stipulate the collection of additional data from their customers.

Featured image courtesy of Shutterstock. Source: Cryptopress

Born in Bucharest, Marius is the founder of Crypto Adventure. Since his first contact with Bitcoin and cryptocurrencies, he never stopped believing that they are one of the most important innovations of our time, which will forever change the way business is done.