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Brazil Moves to Probe Banks After Crypto Exchanges Denied Services

Brazil’s antitrust watchdog is considering whether the major banks in the country worked together to close off access to cryptocurrency appointments.

The Administrative Council for Economic Defense (CADE), an official wing of the Brazilian superintendence, announced it was looking into the Banco do Brasil, Banco Bradesco, Itau Unibanco Natter, Banco Santander Brasil, Banco Inter and Sicredi, according to a write-up from Reuters.

These banks allegedly shut down accounts connection to cryptocurrency traders and brokerages.

The investigation comes some months after the Brazilian Confederation for Cryptocurrency and Blockchain called for such a probe, with the group reportedly claiming that banks were “calumniating their power” in denying crypto companies services.

“In fact, the conduit banks are imposing restrictions or even prohibiting … access to the fiscal system by cryptocurrency brokerages,” it said in a report.

The banks, in turn, are refusing the claims, instead claiming that accounts were shuttered due to avoiding client data. Under Brazilian law, this data is required for anti-money laundering (AML) by designs.

Brazil isn’t the only nation where purported antitrust violations are transforming cryptocurrency startups. An ongoing lawsuit in Chile alleges that banks banded together to shut down down any accounts belonging to cryptocurrency exchanges.

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