Bitcoin Max Exchange Wins Legal Battle Against Santander Bank in Brazil to Keep Its Accounts Open
A Brazilian crypto exchange has won a major battle for its survival recently. Bitcoin Max has been battling the Santander Bank in court in order to keep its accounts open and it looks like the exchange scored a major victory for the sector now.
Working with banks is never easy and in Brazil, things can get even more complicated as some local and international banks (like Santander, which is from Spain) simply decided that they will not let crypto exchanges have accounts on their companies. This is a major problem for companies that want to make Bitcoin transactions because they cannot offer the local fiat currency, Real (BRL).
This has created an ongoing saga, but Bitcoin Max’s victory is very significative now. The company has seen its accounts shut down last year by the Santander Bank, which was forced to reopen the accounts now.
According to the local crypto media outlet, Portal do Bitcoin, Judge Ana Catarino has denied the motion of Bitcoin Max to get its account reopened because she deemed that the bank can choose whoever it wishes to be its customers and it does not need to let any account open at all.
However, Bitcoin Max still had a trick on its sleeve. Its lawyer, Leonardo Ranna, tried an injunction and the judge decided to accept the appeal this time because the Santander Bank did not write prior formal notice before terminating the accounts, which is illegal in the country.
This way, the company had the right to reobtain its account because it was deemed that the bank had closed the accounts in an illegal manner.
A Small But Important Victory
Unfortunately, the victory was not such a big one because it used a loophole instead of the actual legislation and other exchanges might see their accounts being shut down. After the trial, Bitcoin Max has also filed for compensation and moral damages, but the judge ruled against the exchange, as usual.
This is, unfortunately, not the first case of this happening in Brazil. Banco Itaú, a prominent Brazilian bank, has also decided to shut down the accounts of Bitcoin Market, another big exchange. Unfortunately, Bitcoin Market was not as successful as Bitcoin Max.
At the moment, Bitcoin Max is safe, but the dangers still exist and, if there is no effort made to actually regulate the market better and give some rights to the exchange, there is still a threat for the Brazilian crypto market.