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Brazilian regulator demands answers from cryptoexchanges, threatens to fine

Brazilian regulator demands answers from cryptoexchanges, threatens to fine
Oct 4, 2018 by Rico Wise

Administrative Council for Economic Defense of Brazil, which is the antitrust authority of the country, has initiated in inquiry of Brazil’s financial institutions and their stance regarding the digital currency-related operations.

CADE investigated Brazil’s banking institutions previously this year, when the latter were alleged to intentionally hard digital currency exchanges by disallowing their operations. The aim of that probe was to establish if banks abused their powers.

Now, the time has come for the Brazilian cryptoexchanges to stand before the watchdog. The questionnaire has been sent out on October 1, and received by dominant domestic cryptoexchanges, such as Brazilex, BitcoinTrade, Waltime, etc. All of them were demanded to disclose the person filling out the questionnaire, so that the policymaker could further approach them. It is noted that the cryptoexchanges failing to provide a response would be fined up to 25,000 US dollars.

The watchdog demands the cryptoexchanges to provide the description of their business operations in the country, and from that point goes deeper with every consecutive question. Among other things, CADE investigates the attitudes of the cryptoexchanges regarding illegal activities, asking them to provide detailed explanation about the adopted AML/KYC policies, and if they ever refused to provide their services to clients.

According to local media, both banking institutions and digital currency exchanges may request the investigating authority not to disclose the provided answers and classify them as “restricted”, although it depends merely on CADE’s analysis if they would stay undisclosed to the community.

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