Ten cryptocurrency exchanges operating in Brazil had their bank accounts shut down in the past and has now received a questionnaire from the country’s antitrust body according to reports from local news source Valor Economico.
The report revealed the names of the questioned crypto exchanges as Bitcoin Market, Bitcambio, BitcoinTrade, Foxbit, Walltime, Braziliex, BitBlue, Open Digital Capital (OTC), e-Juno, and Profitfy.
The Brazilian Administrative Council for Economic Defense (CADE) has asked the firms to submit their answers before October 19 or risk being fined 5000 Brazilian Reels (appr. $1300).
Further delays in turning in the answers could see the fine rise up to 100,000 Brazilian Reels ($25800) as the regulators specified.
But Why Is The CADE Sending A Questionnaire?
Local crypto news source Portal Do Bitcoin provides the answer by pointing out what the crypto exchanges are expected to answer in the questionnaire.
First, they will reveal the identity of those who will answer the questions. Next, they must explain how their business functioned in Brazil and clarify if they were unable to open a bank account, or if some financial institution closed the account.
Some banks in Brazil are believed to have shut down bank accounts operated by the crypto exchanges because they did not comply with the National Classification of Economic Activity.
So it is likely that the regulators want to find out how the crypto exchanges declared their activity while opening accounts with the banks.
Brazilian Crypto Exchanges Saga With Banks Continue
In September, the Brazilian Blockchain and Cryptocurrency Association (ABCB) complained about some of the largest banks operating within the country for shutting down accounts without explanation.
Following the complaint, the antitrust regulatory body CADE investigated six major banks. The banks claimed that they closed the accounts because they exchanges do not have enough client data to meet up with AML laws.
It is a fiat and crypto battle boiling up in Brazil, and one could finally usher in widespread crypto adoption in Brazil.