Brazilian Crypto Exchange Wins Legal Battle Over Closed Bank Account

Brazilian Crypto Exchange Wins Legal Battle Over Closed Bank Account

Brazilian crypto-exchange

According to a recent report, a jury which was set in Rio de Janeiro regarding a case of closing a checking account has given a verdict that is in favour of Mercado Bitcoin, a Brazilian crypto-exchange. The jury turned down an appeal filed by Banco Sicoob against a ruling by the district court in Barra da Tijuca which granted the exchange the right to maintain its account.

A Justified Reason is Needed

While stating the reason for the ruling, the judge, Regina Lucia Passos from the 21st Civil Chamber of the Court of Justice of Rio de Janeiro said that the appeal needs to be able to give a justified reason in order to close an account but the bank didn’t produce any.

She further said that even after the warning in communiquè31.379/17 which talks about “risks arising from the custody and trading of so-called virtual currencies,” the Central Bank of Brazil has not put a stop to the trading of digital coins.

Also, Passos insisted that since Sicoob didn’t incur any loss while it maintained Mercado Bitcoin’s account, therefore closing the account unilaterally by stating commercial disinterest as the only reason, the bank has violated resolution No. 3,788/16 which states that “the notification of an intention to terminate a contract should contain express reference to the exact motives.”

The ruling is Not Yet Final

Although the decision of the Court of Justice in Rio de Janeiro may not be final, it is a victory for Mercado Bitcoin as the exchange lost a lawsuit against the closure of its account by Banco Itau last year. Previously, the High Court of Brazil in October ruled that banks have the right to close accounts associated with virtual currencies without having to state any reason but the crypto trading platform has the right to take the matter to the Supreme Court as long it has not violated any constitutional norms has not been breached.