Brazilian Crypto Exchange Wins Legal Battle Over Closed Bank Account

A court in Rio de Janeiro has ruled in favor of Brazilian crypto exchange Mercado Bitcoin in a case over the closure of one of its checking accounts. The judicial instance turned down an appeal filed by Banco Sicoob against a decision by the district court in Barra da Tijuca which granted the exchange the right to keep its account open.  

Also read: Coinsquare Lays off 40 Employees in a Troublesome Month for Crypto Exchanges

Banks Should Have a Reason to Close Accounts, Brazilian Court Confirms

According to judge Regina Lucia Passos from 21st Civil Chamber of the Court of Justice of Rio de Janeiro, there should be a justified reason to close an account but the bank did not provide one, Portal do Bitcoin reported. Passos argued that despite warning in communiqué 31.379/17 about the “risks arising from the custody and trading of so-called virtual currencies,” the Central Bank of Brazil has not prohibited the trading of digital coins.

The judge also insisted Sicoob incurred no losses from maintaining Mercado Bitcoin’s account. She added that by closing it unilaterally, claiming only commercial disinterest, the bank actually violated resolution No. 2,025/93 of Banco Central do Brasil. The document states