Brazil’s digital currency company fight against a banking ban has received a new boost after the country’s antitrust regulator decided to revive its investigation of the ban.
The Administrative Council for Economic Defense (CADE) voted on Wednesday to reopen its inquiry to banks that refused digital currency company services and closed their accounts. The investigation accused the violation of state competition law.
CADE launched an inquiry two years ago after Brazil’s biggest bank began closing accounts for digital currency companies. The probe, however, died a few weeks ago, with the CADE investigation arm rejecting it due to technical reasons.
Only a few days later, Lena Prado, CADE advisor refute the decision, claiming that the bank has no justifiable reason to close the account. And now, the seven-member court at CADE has heeded his summons, voted to reopen the investigation.
Digital currency companies in Brazil have suffered for years now in the hands of the biggest bank in the country. Banks have refused their services, closed their accounts as they pleased and without justifiable reasons. As a CADE investigation found, banks claim the closure was necessary because digital currency companies are vulnerable to money laundering.
Fabiano Dias, vice president for the Bitwage digital currency startup in charge of Latin America, refutes this claim. He stated, “We do a better job in checking the legitimacy of the money we touch than banks and government agencies. For us the crypto business, I know I can talk to our partners in Brazil about it too, we are confident in our KYC procedures, ensuring we only allow legitimate professionals, helping them increase efficiency in their payments and finances. “
The reopening of the inquiry offers the industry ray of hope that digital currency companies can finally operate freely and offer their clients fiat services comfortably. Denial of service has prompted many exchanges to the wall, with several smaller ones having to be completely shut down.
The investigation will focus on Brazil’s biggest banks including Santander, Itau Unibanco Holdings, Banco do Brasil, Bradesco, Sincredi and Banco Inter. Collectively, these banks control more than 80% of the Brazilian banking industry.
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