Brazilian Court of Justice Rules in Mercado Bitcoin Exchange’s Favor, $350,000 in Funds Returned
According to a local crypto media firm in Brazil – Criptomedas Facil, an official ruling has been made against Banco Santander in a case between the bank and a cryptocurrency exchange called Mercado Bitcoin. The São Paulo state Court of Justice dismissed an appeal by the bank and also ordered the bank to remit funds back to the crypto exchange.
Earlier, Banco Santander had terminated the crypto exchange’s account and froze its funds on the grounds that its operations did not align with the bank’s policy. This action by the bank caused the exchange to seek redress in court as they asserted that the termination of their account was baseless.
Some Specifics Of The Case
According to Criptomedas Facil, the total amount of money the bank is to remit is R$1, 350,733 which is about $350,000. The court ruled on the 6th of March and the report says that the vote for dismissal was a unanimous one.
Furthermore, apart from the order to return the funds, the court also ruled that the bank should pay an interest of one percent per month and handle in its entirety, the legal fees incurred by the exchange. The fee expected to be paid as legal fees were pegged at a minimum of 10 percent of the amount of money the verdict is worth. This ruling was immediately appealed by Banco Santander but was subsequently dismissed by the court.
Other Stories Involving Banks And Crypto Exchanges
In December of 2018, two major banks in the South American nation of Chile, made an appeal to the Chilean anti-monopoly court and asked them to discontinue its ruling which ensures that the bank accounts of local crypto exchanges cannot be shut down.
Also, in April last year, an appeal court in Chile was approached by three major cryptocurrency exchanges in the country. The exchanges namely BUDA, Orionx and CryptoMarket(CryptoMKT), asked the court to help recover their accounts which were closed by the respective banks. Consequently, in July of the same year, the court ruled that Banco Estado should reactivate the account belonging to Orionx.
Finally, in October of 2018, the Financial Services Commission (FSC) in South Korea, officially stated that banks may now collaborate with crypto exchanges in the country, by creating virtual bank accounts.
According to Choi Jong-ku, the commissioner of South Korea’s FSC:
“There exists no issue in banks providing virtual bank accounts to cryptocurrency exchanges. If digital asset trading platforms have KYC and AML systems in place, there is no problem in issuing virtual bank accounts to exchanges.”