Sicoob explains why he closed the CoinBR account

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By Soraia Barbosa
Posted on January 21, 2019

Last December, Sicoob Cooper Wednesday ruled out the exchange of CoinBR encrypted coins of members of the cooperative. According to what the bank said, the lawsuit was motivated by the fact that the exchange "engaged in a competitive activity". For some investors, the decision of the bank testifies to the fear that the traditional financial market has to advance the cryptomercado.

More details on Sicoob's action can be found in the notice made by ABCB (Brazilian Association of Crypto and Blockchain), made on the 16th. The document includes Sicoob's notification of the closing of the current account. of CoinBR, which took place on December 28th.

In the ABCB document, the organization explains that Sicoob stated that the termination of relations between the companies was due to "an activity considered detrimental to the cooperative".

In theory, Sicoob up to a reason to close the current account of CoinBR, according to his defense. However, the problem begins precisely in what they consider as "an activity considered harmful". After all, what was considered a negative activity was only the fact that the brokerage "sells digital currencies," according to the opinion that was also added to the administrative files by ABCB.

ABBC also claims that Sicoob has confused the lack of regulation with the practice of crimes and illegal activities. In addition, the cooperative also claims that the crypto-coin trade is " inconsistent with the purpose of the cooperative, because it is an activity in competition with the investments proposed by Sicoob Coopercredi- MS. "

. is the art. 17 of the articles of badociation of the cooperative, which allow the organization to eliminate employees of its staff in case of "offense provided for by law or by law" or when "a" activity deemed harmful to the cooperative is exercised ". For ABCB, these are "generic and one-sided" arguments, in that the Cooperative has the power to decide who is hurting the organization or not and is fully entitled to expel the "offenders".

For many, this equates to an anticompetitive position, leaving the large financial institution with a clearly defined advantage over the cryptocurrency broker. As you can imagine, it is essential to have a current account so that an exchange can carry out all its activities and serve its customers.

The exchange still has time to defend itself administratively and to appeal Sicoob's action.

See also: Bitcoin Needs an ETN Network to Grow, says CBOE CEO