Bitcoin, Crypto currency, Blockchain

The freezing of accounts in Brazil: the conflict between banks and Bitcoin exchanges

Have blocked Brazilian banks, the accounts of Bitcoin exchanges? This throw various stock exchanges in the South American financial institutions for quite some time. Accordingly, the banks have been frozen for no good reason since 2015 again and again, accounts of stock exchanges for crypto currencies or restricted. The payment institutions, in turn, argue the cause is the lack of transparency in the Exchanges was in the commercial registers. In addition, many exchanges would not have communicated to the banks for account opening of your business clearly. The conflict between banks and the Bitcoin Ecosystem in the next round.

Who opened in Brazil, an account, you must notify the Bank clearly required, and for what purpose he this – so it is a common practice. Banks have found apparently gaps in the opening of Accounts of various Exchanges. The result of the repeated blocking of accounts, on the crypto-exchanges, in turn, loudly expressed, was so loud that the Brazilian economic Institute of CADE (Administrative Council for Economic Defense), has now forced the processes to unfold.

Both sides are in the duty of Declaration

The banks had in the past for blocking the accounts. Now the crypto-exchanges. The government Institute has sent to you a comprehensive catalogue of questions. The non-response would result in a penalty of up to US $ 25,000. The questionnaire includes, in addition to the General description of the operations, and the potentially incurred economic damage that the Bitcoin exchanges by freezing of Accounts had to accept. Still does not seem to be clear, what Position will take the government to the accusations. As in many parts of the world, the legal and Bank system seems to be in the discovery phase and to not know even so exactly what is the place of digital currencies and the trading with it will occupy in the legal system.

Banks and the Bitcoin-world – a love-hate?

So, you don’t know how to get the banks and the crypto-world. Bitcoin and the Blockchain, as an Alternative to the banks started, will now be promoted on the one hand, of the same, and more and more Blockchain-based applications are implemented in the banking system itself. Bitcoin-traditionalists and Cypher punks would have good reason to view this as supporting the wrong side.

On the other hand, strong resistance is seen, as now in Brazil. Of course, every country, every legal system and each institution is considered separately. A Simplification to “the banks” and “the crypto world” would be a complex matter. Nevertheless, it is often observed that banks, in particular, against an unregulated Bitcoin world, fight back – if, however, the old rules of the game holds, there seems to be many points of contact to the traditional banking world.

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