Brazilian cryptocurrency exchange Bitcoin Max finally won its battle to keep its Santander checking account open.
The Battle with the Banks Is An Ongoing Saga
Working with banks hasn’t been easy for cryptocurrency exchanges and blockchain startups in most parts of the world. And in what’s been an ongoing saga for Bitcoin Max, cryptocurrency exchanges everywhere are celebrating small victories.
Bitcoin Max had its account closed for the first time back in August last year by Santander Bank. But the institution was forced to reopen the exchange’s accounts due to an injunction granted by the court.
In the first hearing, according to Portal do Bitcoin, Judge Ana Catarino denied the motion of Bitcoin Max to reopen its account, stating that it was up to the banking institution if it wished to deny services or not:
The closing of the account is a faculty of the banking institution, according to the norm established in article 10 of Resolution 2,025 / 93 of the Central Bank of Brazil.
But Santander Bank Never Wrote a Notice
The motion against Bitcoin Max at the time led to the company’s lawyer Leonardo Ranna to plead an injunction. Ever since then, the cryptocurrency exchange has been battling it out to keep its checking account open.
It seems that the original ruling against Bitcoin Max in favor of Santander was actually an error. The judge did not realize that Santander had failed to provide Bitcoin Max with any prior formal written notice. This is illegal in Brazil.
According to the same resolution of the Central Bank mentioned above, a bank can only terminate an account holder’s account by providing:
prior written communication of the intention to terminate the contract.
Santander Bank failed to do this.