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A Brazilian court ordered bank Santander to reactivate the current account of the crypto exchange Bitcoin Max. The financial institution had canceled the account without prior notice on August 15, alleging “commercial disinterest.”
Courts Rule: ‘Abusive Conduct’
The reopening of Bitcoin Max’s accounts was dictated by federal judge Ana Catarino, head of the Eighth Civil Court of the Court of Justice of the Federal District of Brazil. The court concluded that bank Santander did not respect the Central Bank of Brazil’s rules on account closure and also violated the consumer protection laws of the Consumer Defense Code.
Judge Catarino considered that the conduct of the financial institution was “abusive” since there was no prior communication from the bank with the crypto exchange on the closing of the account, which is a regulatory requirement. Also, she said that this action might create problems for the company, making it close to impossible for them to meet their financial obligations.
Although this is not the final ruling, and representatives of Santander can appeal the decision, it is necessary that the institution reactivate the account while the case remains open. Failure to comply with this decision could cost Santander a fine of 5,000 Brazilian Reais, equivalent to just over 1,200 USD.
This decision comes as after the original judgment went against Bitcoin Max. Initially, the case was directed by the judge Geilza Fátima Cavalcanti Diniz, of the Third Civil Court of Brasilia, who ruled that there was no “illegality of the bank’s conduct.”
Rodrigo Portolan, Bitcoin Max’s lawyer, stated that the company had to file a grievance appeal in order for the first decision to be reviewed by the court, given the detriment of this action to the exchange platform. He pointed out that his client couldn’t financially plan after discovering that the company’s account was terminated.
Banks vs. Crypto Exchanges
The Brazilian justice system is divided over how to deal with these cases. While some crypto companies, such as Walltime, have managed to receive favorable measures in the courts, while others, such as Mercado Bitcoin, have not been so lucky.
The case of Mercado Bitcoin vs. Bank Itatú is currently in the hands of the Superior Court of Justice of Brazil. The resolution of this lawsuit is being watched closely by the Brazilian crypto community since it would establish precedence for the country’s entire judicial system.