CADE enquiry into bank abuses against exchanges gains reinforcement with US legislation

ABCB’s new petition also includes the “GuiaBolso case”, where Bradesco paid over R$ 23 million.

CADE enquiry into bank abuses against exchanges gains reinforcement with EUANOTICS legislation

The investigation of the conduct of banks closing exchange accounts in Brazil by the Administrative Council for Economic Defence (CADE) was further strengthened by a petition recently filed by the Brazilian Criptoactive and Blockchain Association (ABCB).

According to the association, US legislation may serve as an example of how banks discriminate against exchanges that operate in the crypto market.

ABCripto says banks ‘act cynically’ in responses to CADE
In addition, the petition submitted by ABCB also cites the case involving GuiaBolso and Bradesco. In this case, the bank decided to pay a fine of more than R$ 23 million for hindering Fintech’s access to financial information.

US Legislation
ABCB sent a petition to CADE last Monday (23) asking for new information to be added to the enquiry involving banks and exchanges in Brazil.

CADE asks the Federal Revenue Service for information on CNAE exchanges of bitcoin and cryptomoedas
According to the petition, a set of new rules adopted by the Office of the Comptroller of the Currency (OCC) in the US, allows an understanding “of non-discrimination” committed by banks.

“The new rules are based on the fundamental principle of non-discrimination and prohibit banks – alone or in coordination with others – from limiting fair access to financial/banking services by preventing a person, either natural or legal, from entering, or limiting their ability to enter, a particular market, or harming a person, either natural or legal, in order to benefit another person, either natural or legal, or interest”.

GuiaBolso Case
In addition to mentioning US legislation that may serve as a model in the conduct of the bank and exchange survey, ABCB provided information on the GuiaBolso case.

In an acknowledgement of interference in fintech’s activities, Bradesco decided to pay BRL 23.8 million to close an investigation initiated by CADE. According to the investigation, the bank made it difficult to access information from GuiaBolso customers who had an account with Bradesco.

‘The Central Bank acted carelessly and ran away from its obligation,’ Fernando Furlan, for ABCB, told CADE
For ABCB, this recognition of interference can be used to attest how banks arbitrarily close exchange accounts in Brazil. Thus, with the new petition the CADE investigation gains new information in defence of the brokers that trade in cryptomites.

“In making its decision, CADE found evidence of violations of the economic order, as Bradesco’s practice restricted the provision of services by Fintechs that depend on the bank data of their users, to the detriment of free enterprise and free competition.

War between banks and exchanges
Banks that close exchange accounts wage a real war against platforms that operate in the cryptomaniac market. Although banks are expected to close accounts, ABCB believes that the practice should be investigated by CADE through an investigation.

Thus, since 2018 the investigation against Brazilian banks has been examining the complaint about interference in the exchange business. Until a decision is made on the case, new information is attached in defence of the cryptomaniac brokers.

In addition to ABCB, the Bitcoin Market also submitted information on the conduct of banks that close exchange accounts. According to the Brazilian platform, these institutions should be punished for the activity, which can still be condemned by CADE.