The concept of cryptocurrency is causing many problems in the bitcoin trade and thus is garnering negative criticism. In a recent case, a handful of banks in Brazil are being investigated for alleged monopolistic tendencies in the trade of bitcoin and other cryptocurrencies. The Administrative Council for Economic Defense (CADE), a transparent body, holds the financial institutions responsible for shutting down accounts of brokers trading in cryptocurrency without merit.
The Administrative Council for Economic Defense mentioned that it has initiated an investigation of Brazil’s top banks as they suspect a foul play. Six of Brazil’s biggest banks have been accused of committing malpractice in cryptocurrency trading. The watchdogs are examining in order to find out any monopolistic practices that are limiting the brokers to trade in the bitcoins or other virtual currencies.
Banks that are being investigated for monopolistic actions include Banco Santander Brasil SA, Banco Bradesco SA, Banco do Brasil SA, Itau Unibanco Holding SA and Banco Inter and Sicredi. The news reports suggest the concept of cryptocurrency is growing in the Brazil market. Many people are trading in various virtual currencies as the numbers have soared from thousands to billions over a few years, as mentioned in news bitcoin.
Meanwhile, The Brazilian Association for Cryptocurrency and Blockchain (ABCB) complained to CADE that financial bodies are misusing their power. It pointed out that banks are dominating by closing accounts of brokerages trading in various cryptocurrencies. However, the banks denied all charges by stating that they closed the accounts due to the lack of data of the clients.
While the monopoly frenzy has brought Brazil’s top-notch banks under the scanner, Bitmain, the China-based cryptocurrency mining is losing its footing. Bitmain remained in the monopoly undoubtedly for a quite some time, but currently, it is slowing down. On one hand, monopoly is affecting the cryptocurrency trading and on the other, Bitmain has lost its dominance over its competitors, as mentioned in The Next Web.[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. ]