A Bitcoin exchange has won a case against Banco Santander, with the bank being ordered to unfreeze the latter’s funds. Per a report by a Sao-Paolo news site, the bank has been ordered to refund the money. Santander was also compelled to pay the legal fees, adding up to more than $34,000. On top of that, the refund shall attract an interest of 1 percent per month.
Banco Santander had appealed against the ruling, declaring that it was unjust. On March 8th, the court ruled in favor of Mercado Bitcoin, the exchange.
‘Terms Broken,’ and a Resounding Defeat
The bank had frozen Mercado’s account because it broke its policies. It claimed that the business dealings of the latter were not in line with the bank’s terms and conditions.
According to the online report, Banco Santander argued,
…after being informed by its account holders that the transactions were not carried out by them, began an internal investigation to investigate the trajectory covered by the money in question, when it was found that, in fact, there was bank fraud perpetrated by third parties…
Mercado immediately sought legal recourse and won. After the bank appealed, the court gave a unanimous vote that the exchange is reimbursed.
The bank will have to pay back about $350,000, not counting the legal fees. In total, the court has ordered repayment of R$1,350,733.
Positive Trend for Exchanges Around the World
Exchanges around the world are benefitting from a positive trend, with more rulings being made in their favor. Last October, the courts ruled in favor of two other exchanges, and against their banks. Their accounts had been frozen because they associated with Bitcoin Max.
In July 2018, an exchange in Chile recovered their accounts from Banco Estado. The OrionX account was ordered to be re-opened by an anti-monopoly court.
In South Korea, the financial regulatory authorities have set out a system which will help the exchanges work with banks. According to the financial services watchdog’s commissioner, Mr. Choi Jong-ku,
There exists no issue in banks providing virtual bank accounts to cryptocurrency exchanges. If digital asset trading platforms have KYC and AML systems in place, there is no problem in issuing virtual bank accounts to exchanges.
The trend may usher in a new chapter in the battle between the banks and the new cryptocurrency tech. With reasonable regulations in place, the industry may yet survive and thrive.
Do you think that it was fair to give back the money and legal fees to Mercado Bitcoin? Share your thoughts in the comment section below.