Crypto exchanges in Brazil may soon lose bank support.

One of the major commercial banks in Brazil has refused to abide by an agreement that prevents the closure of the crypto exchange account with the bank.

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The commercial bank in Brazil, Banco Bradesco, has refused to honor any agreement that prevents the bank from closing crypto exchanges’ accounts. This decision by one of the major commercial banks in the South American country might imply that they are planning to cut ties with crypto exchanges.

 

Banks are allowed to withdraw services from crypto exchanges.

In December 2019, Brazil’s Administrative Council of Economic Defense (CADE) ruled that it was not illegal for banks to withdraw services from crypto exchanges. The Brazilian Association of Cryptocurrencies and Blockchain (ABCD) criticized this ruling saying it is full of “darkness, contradictions, and omissions.” Banco Bradesco chose not to honor any agreement that prevents closure of crypto exchanges’ accounts because they believe cryptocurrencies pose money laundering risks.

 

Bank in Chile removes support from the crypto exchange Chilebit.

Banco de Crédito e Inversiones in Chile has moved to close the accounts of the country’s first crypto exchange, Chilebit. The banks had sent an official letter to the exchange in December 2019, saying that the exchange had 15 days to wrap up its dealings. The bank did not give any reason for its decision. Crypto exchanges in Europe are also facing regulatory troubles as the upcoming AML regulations require banks to collect more data from their customers.

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Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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