A court in Rio de Janeiro has ruled in favor of Brazilian crypto exchange Mercado Bitcoin in a case over the closure of one of its checking accounts. The judicial instance turned down an appeal filed by Banco Sicoob against a decision by the district court in Barra da Tijuca which granted the exchange the right to keep its account open.
Banks Should Have a Reason to Close Accounts, Brazilian Court Confirms
According to judge Regina Lucia Passos from 21st Civil Chamber of the Court of Justice of Rio de Janeiro, there should be a justified reason to close an account but the bank did not provide one, Portal do Bitcoin reported. Passos argued that despite warning in communiqué 31.379/17 about the “risks arising from the custody and trading of so-called virtual currencies,” the Central Bank of Brazil has not prohibited the trading of digital coins.
The judge also insisted Sicoob incurred no losses from maintaining Mercado Bitcoin’s account. She added that by closing it unilaterally, claiming only commercial disinterest, the bank actually violated resolution No. 2,025/93 of Banco Central do Brasil. The document states that a financial institution should clearly define the reason for such a measure. Furthermore, Bacen’s circular No. 3,788/16 reads that the notification of an intention to terminate a contract should contain express reference to the exact motives.
‘The Justice’ sculpture in front of the Supreme Federal Court
The decision of the Rio de Janeiro Court of Justice may not be final, Portal do Bitcoin notes, but it is nevertheless a victory for Mercado Bitcoin. Last year, the exchange lost a lawsuit against the closure of its account by another institution,