Brazil’s antitrust regulator gives October 19 deadline for crypto exchanges to put their side of story 24473 CADE website
Nitin Murali
Oct 4, 2018 at 2:21 AM

The Brazilian Administrative Council for Economic Defence (CADE), Brazil’s antitrust regulator has sent a questionnaire to brokerage firms to update information about the closure of bank accounts in case of virtual currency use.

According to the local financial newspaper Valor Economico, CADE has sent the questionnaire to ten companies which include Bitcoin Market, Bitcambio, Bitcoin Trade, Foxbit, Walltime, Brazillex, BitBlue, Open Digital Capital (OTC), e-juno, and Profitfy.

The main reason behind CADE’s current action is the request initiated by Brazilian Association of Cryptomoedas and Blockchain (ABCB) which claimed that Atlas Quantum, a cryptocurrency exchange’s account was closed by Banco do Brasil.

On the questionnaire, the brokerage firms have to confirm if they have closed accounts, canceled by banks, or if they were unable to open a bank account. It also provides a space to clarify if the firms faced any kind of lawsuits or not.

Brokers can present details on the questionnaire about their activities and the hardships faced. If they do not respond, they pay a fine of R$ 5000 and the penalty can go up to  20 times if there is an unjustified delay.

CADE’s Superintendence General has already received details from Banco do Brasil and Itau rejecting any irregularities with the closing of accounts of crypto-related clients. But with this methodology, the investigations continue to obtain more information from brokerage firms.

"The establishment of the administrative inquiry against the banks and the sending of an official letter by Cade to the exchanges and brokerages of crypto-currencies, containing a very significant questionnaire on the situation they face, keeps us with positive expectations regarding the process," said Fernando Furlan, ABCB Commander, praising CADE’s request for information.

The deadline to submit the completed questionnaire is October 19, Friday.

According to a BC Focus report earlier, in Chile, Buda, one of the most prominent Chilean cryptocurrency exchange convinced the court to order the re-opening of their cryptocurrency accounts at two major Chilean banks.

See Also:

Brazilian brokerage firm Groupo XP compelled to jump into the crypto market

Crypto-trading Brazilian banks under the radar, following monopoly claims

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