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The Brazilian crypto exchanges are losing support from the banks in the country as the major commercial bank refused to abide by the agreement which prevents the closure of crypto exchange accounts. All over Latin America, the crypto trading platforms are having trouble with maintaining banking relationships so let’s read more about it in the upcoming blockchain news below.

According to the crypto news outlet Cryptonoticias, Banco Bradesco which is one of Brazil’s major commercial banks is refusing to honor the agreements preventing the closures of crypto exchange accounts. Back in 2019, the Administrative Council of Economic Defense of Brazil, ruled that it was not illegal for the banks to withdraw their services from crypto exchanges and at that time, CADE argued:

‘’There is no evidence of antitrust crimes as a result of the rejection of some banks to establish contracts with certain cryptocurrency exchange [platforms].’’

CADE’s ruling from December 2019 was only a departure from the previous stance that these actions included sufficient anti-trust elements and the Brazilian Association of cryptocurrencies and Blockchain described the ruling as a lot of ‘’ darkness, contradictions and omissions.’’ For Banco Bradesco, the cryptocurrencies pose serious money laundering risks and the bank is reportedly choosing not to follow the demands form the ABCB regarding the closure of the accounts for the Brazilian crypto exchanges. Apart from Banco Bradesco, some of the other commercial banks are also continuing with the closure of accounts that belong to crypto exchanges. Sao Paolo’s Court of Justice dismissed an appeal that was initially filed by Mercado Bitcoin which is a BTC exchange against Bank of Brazil because of the decision to shut down the accounts.

As previously reported, Bitcoin Max, another Brazilian crypto exchange, won the fight to keep its accounts with the Santander Bank. The problem in Brazil seems to be very symptomatic of the established trend across Latin America mainly in Chile. Banco de Credito e Inversiones which is one of Chile’s commercial banks has shut down the accounts that belonged to the Chilebit crypto exchange. Back in 2018, the Chilean crypto exchanges also won a fight against the Appeals Court that ordered the banks to reopen their accounts. The crypto stakeholders in the country railed against the banks and their decisions to offer banking support to virtual currency exchanges.