Closing of Account Deemed Unlawful
The decision was rendered by Judge Geilza Fátima Cavalcanti Diniz from 3rd Civil Court of Brasilia, the capital. It verified an injunction given to the digital possession trading platform in September 2018 by Judge Ana Catarino of the 8th Federal District Court, Website Portal do Bitcoin reported. Bitcoin Max submitted a suit against Santander in August after its account was closed without any formal notification.
Brazilian cryptocurrency exchange Bitcoin Max has won in court the right to keep its checking account with Banco Santander. According to the presiding judge, the bank has not met its commitment to notify the crypto business of the closure in advance.
Judge Cavalcanti Diniz specified in a previous ruling last summer season that the closing of the account is in the powers of the banks according to the rules established in short article 10 of Resolution 2,025/ 93 of the Reserve Bank of Brazil (Bacen). Now, she has considered unlawful the rescission of the agreement by the defendant, Santander, because there was no proof that the complainant, Bitcoin Max, was notified about the closure of its account. According to the exact same resolution of Bacen, banks can end accounts just after sending a written notification of intent to the account holder.
The cryptocurrency exchange had its claim for payment for ethical damages dismissed as unproven. The judge stated the closure of its account is not by itself an infraction of personal rights. She likewise noted that the case needs to not be dealt with according to consumer law as the bank account was utilized to facilitate company activities.
Santander Accused of Abusing Rights
Bitcoin Max’s lawyer Leonardo Ranna explained the judge’s decision as follows: “At first, she thought the bank can terminate the agreement and close the account. But what happened was that in the course of the proceedings we argued that the bank would not have complied with the Central Bank’s resolution that requires it to provide prior notification and present a plausible reason for the termination of the account agreement.”
The judge understood, Ranna included, that Santander abused its rights as it did not pay attention to what is recommended in the Bacen resolution. But he likewise stressed that the judgment did not discuss the fact that Brazilian banks orchestrated an operation to close the accounts of all business operating with cryptocurrencies. He insisted this should have been considered because there’s evidence that’s what happened.
The current ruling comes after a court in Rio de Janeiro recently ruled in favor of another Brazilian crypto exchange, Mercado Bitcoin, in a case over the closure of its checking accounts. It turned down an appeal submitted by Banco Sicoob against the choice of a district court to allow the trading platform to keep its account open. Because case, the judge firmly insisted there must be a warranted factor to close an account, which the bank did not provide.
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