The Brazilian Antimonopoly Service is checking banks that have stopped servicing crypto firms

The Brazilian Blockchain and Cryptocurrency Association (ABCB) was forced to file a complaint against the actions of the country's banks with the Administrative Council for Economic Defense (CADE). According to the Association, six large national banks unreasonably refused to service accounts of brokerage companies associated with cryptocurrency transactions. Among the closed ones is the account of the large crypto trading platform Atlas Quantum, closed by Banco do Brasil.

Brazil's Antimonopoly Committee has begun examining the banks listed in the Association of Banks' complaint for abuses by monopolists in the financial services sector towards cryptocurrency operators.

CADE's statement states that the country's largest banks are unreasonably denying access to financial banking services to cryptocurrency trading operators. In response to claims from regulatory authorities, financial institutions respond that they are forced to close cryptobrokers’ accounts due to their violation of the KYC (know your client) procedure, complete or partial lack of client data to identify them, which is contrary to the anti-money laundering law (AML). 

Antitrust experts agree that banks must take decisive action to comply with AML and ensure the legality of financial transactions, but when there is reason to believe such financial activity is illegal. Thus, the antitrust regulator considers it unacceptable to apply drastic measures to deny banking services to all representatives of the crypto industry without thoroughly verifying the compliance of brokerage firms with current legislation.

After announcing the start of the audit, one of the largest banks in Brazil and Latin America, Banco do Brasil, noted that the company is committed to “competitive practices based on ethics and respect for free competition.” The bank believes that it is acting within the law and the audit will confirm this.

Crypto platforms in many countries around the world face a similar attitude towards cryptocurrency transactions. The banking system of Australia, New Zealand, and Bulgaria does not recognize the right of cryptocurrency companies to banking services, closing broker accounts. In some jurisdictions, such as Chile, crypto exchanges managed to defend the right to use banking services through the courts, while in India, the court upheld the Reserve Bank of India's ban on working with crypto companies. 

Such a denial of access to the traditional financial system undoubtedly has a negative impact on market development and can kill an entire industry.