Brazilian cryptocurrency brokerage firm M Intermediação e Prestação de Serviço Ltda has won a legal battle against local commercial bank Banco Bradesco over the closure of its account.
According to Finance Magnates, the cryptocurrency firm was accepting deposits from its clients in both fiat and bitcoin to offer them trading services, and had a similar withdrawal process. Its account at Banco Bradesco was being used for the fiat deposit and withdrawals.
Last year, however, the bank reportedly blocked M Intermediação e Prestação de Serviço’s account citing unusual activity. The news outlet reports it was “trying to prevent any fraud committed using its accounts”
A Brazilian court has now ruled the bank’s decision for blockchain the brokerage firm’s account wasn’t backed by any substantial evidence, and ordered it to immediately reopen. The judge reportedly ruled:
There is no documentary evidence on the unusual movements that gave rise to the block.
Brazil has notably seen various similar cases. In a lawsuit filed by local cryptocurrency exchange Mercado Bitcoin against Spanish bank Santander, the court ruled in favor of the cryptocurrency trading platform as well. As covered the bank was ordered to return over $335,000 to the exchange.
The cryptocurrency scene has been growing in the South American nation, so much so that in April of last year a blockchain association, the Brazilian Association of Cryptocurrencies and Blockchain (ABCB) was launched to bring more regulations, debate, and progress to Brazil’s cryptocurrency space.
Earlier this year, the country’s Ministry of Justice revealed it was studying bitcoin over its potential use in crime. The country’s president Jair Bolsonaro has, however, revealed he doesn’t know what bitcoin is
