The Brazilian Administrative Council for Economic Defense (CADE) which is operated by the local Ministry of Justice sent a questionnaire to 10 crypto exchanges. The exchanges have time till October 19 to respond to the questionnaire sent by the Brazilian regulator. In case they fail to respond, they will be fined up to 5,000 Brazilian Reals (approximately $1,300). The penalty can even reach up to 100,000 Reals (around $25,800), CADE clarified.
The questionnaire was sent to the 10 exchanges on October 1 by the CADE Superintendent General. CADE had launched a probe against six major banks last month to determine whether they had closed down the accounts of crypto exchanges. The Brazilian Association of Cryptomoedas and Blockchain (ABCB) filed the initial request claiming that Banco do Brasil had closed down the account of crypto exchange Atlas Quantum.
Just as the banks had to clarify the reasons for shutting down the accounts of crypto exchanges, now the exchanges have to answer the eleven questions shared in the questionnaire by CADE. These 10 companies include Bitcambio, BitcoinTrade, Foxbit, Walltime, Braziliex, Bitcoin Market, BitBlue, e-juno, Open Digital Capital (OTC) and Profitfy.
The exchanges need to reveal the identity of those who will be answering the questions. The questionnaire is divided into two sections. In the first part, the exchanges need to explain how their business functioned in Brazil. The second part comprises of 10 questions. The exchanges also need to clarify in this section, if their accounts were closed down by some financial institution. They have also been asked to clarify if they were unable to open a bank account. CADE also wanted to know from the exchanges about the legal actions faced by them, as stated in the Portal do Bitcoin report.
Chile has also faced a similar legal battle between crypto exchanges and banks. A group of Chilean exchanges applied to the courts to fight the decision of several banks to shut down their accounts. Chile’s anti-monopoly court ordered two banks towards the end of April to re-open crypto exchange Buda’s accounts, as mentioned in the Cointelegraph report.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]