Reuters Reports Antitrust Institution in Brazil is Probing about Bitcoin Trades with Major Banks
The local antitrust regulator in Brazil is purportedly inspecting six national banks within the country for suspected monopolistic practices within the cryptocurrency space according to a report from Reuters.
The regulating body, known as the CADE or Administrative Council for Economic Defense, is an institution within Brazil’s government that guides, inspects, prevents and investigates the abuse of economic power. CADE reportedly launched the probe this week to discover whether the nation’s leading banks had abused its powers by closing accounts of crypto brokerage firms that were engaging in bitcoin trading.
Based on news reports from Reuters, the CADE investigation was initialized after the country’s blockchain association received numerous complaints. One specific complaint alleged that Atlas Quantum’s account, a crypto trading provider, was closed by Banco do Brasil. In the ongoing investigation, the CADE is expected to inspect most registered banks like Banco Bradesco, Banco Santander Brazil, Itaú Unibanco Holding and also the unlisted Sicredi cooperative bank and Banco Inter.
Reuters cited a report from CADE that said that all the banks within the nation were imposing some type or restrictions or outrightly limiting access to financial services to cryptocurrency brokerage firms. However, the banks allegedly claim that only brokers who got their accounts closed were those with significant issues.
For instance, some brokerages lacked adequate data about their clients, which is a required regulatory factor under the country’s AML laws.
Unfair to Apply Blanket Restrictive Measures
Antitrust experts who commented on the matter to Reuters said that illicit financial activities must be avoided, especially by crypto brokerage firms. The experts added that banks would quickly take restrictive strategies immediately they notice any crimes being committed by holders of accounts within their financial institutions.
Nevertheless, the antitrust professionals also told Reuters that it was unfair for banks to start applying restrictive steps across all crypto firms without first examining how each firm is dealing with anti-fraud and compliance measures.
After the announcement of the CADE probe into the banks in Brazil, the biggest of them regarding assets, Banco do Brasil, told reporters that the bank was dedicated to ensuring ethic-based competitive practices while respecting the free competition. Meanwhile, Itaú Unibanco commented that it was confident that the probe would find that it had conducted itself legitimately in its dealings with crypto brokerage companies.
As the entire world moves towards finally accepting the cryptocurrency economy and blockchain technology, there is a missing friendship between banks and crypto businesses and crypto firms. If banks and these exchanges can cooperate and work together, blockchain and crypto will finally become mainstream.
Every benefit of blockchain services, serving underbanked people to reduced transaction costs may not come easily to fruition if there is no mass adoption across financial institutions and banks.