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CADE asks Federal Revenue about CNAE of bitcoin and cryptomoedas exchanges

In a document sent to CADE, the institution asks the Federal Revenue to inform about CNAE of cryptoactive companies

CADE asks Federal Revenue about CNAE of bitcoin and cryptomoedas exchanges
The Administrative Council for Economic Defense (CADE) forwarded a document to the Federal Revenue Service in which it asks for information on the impact of the National Classification of Economic Activities (CNAE) on companies in Bitcoin and Cryptomoedas.

Thus, according to the document, CADE wants to know what impact the CNAE may have within the 1888 Normative Instruction.

„Considering the recent creation, by IBGE, of a specific CNAE (National Classification of Economic Activities) for the activities of brokerage and custody of cryptoactives, please inform the understanding of the Brazilian IRS about the repercussion that such fact may have on the application of the Normative Instruction RFB nº 1888, which „institutes and disciplines the obligation to provide information related to the operations carried out with cryptoactives“, highlights the document.

The Central Bank acted with carelessness and escaped from its obligation,‘ says Fernando Furlan, for ABCB, to CADE.

The document also asks that if the Federal Revenue has more considerations about the activity of the companies of criteria in Brazil to communicate to CADE.

„Present any other information that it deems relevant or necessary for the analysis of the subject by this Council“.

Exchanges X Banks

The document is part of the process opened by the Brazilian Association of Cryptoeconomy and Blockchain (ABCB) against banks for closing Bitcoin and Cryptomoeda companies‘ accounts.

The initial process alleges, among others, that the banks close accounts of Bitcoin companies in an anti-competitive attitude.

ABCripto says that banks ‚act cynically‘ in responses to CADE

The case has been under analysis since June 2018 and has even had a CADE Superintendence decision in favor of banks and against cryptomoeda companies.

However, one of CADE’s commissioners disagreed with the Superintendency’s decision and the case was again analyzed by the institution.

Since then, CADE has been notifying public institutions such as the Federal Revenue and the Central Bank to present a position on specific issues in the process.

Exchanges of Bitcoin, banks and fintechs have also been notified to provide clarifications.
Central Bank

In its statement to CADE the Central Bank that banks may close current accounts without the need to communicate the reasons for the closure.

„In this way, the possibility of closing without specifying the motivation is opened, respecting the procedures provided for in the rules,“ declared the Central Bank.

Also in the document the Central Bank declared that the opening and maintenance of deposit accounts depend on free expression of will between the parties.

In the case of exchanges of Bitcoin, the Central Bank declares that banks may close current accounts without specifying motivation

In this way financial institutions are free to establish requirements for the opening of accounts and define the offer of products and services linked to them.

„Regarding the refusal to open deposit accounts, there are no provisions in the regulations of the National Monetary Council (CMN) or the Central Bank of Brazil (BCB) requiring financial institutions to formalize the reasons and justifications for the refusal,“ declared the Central Bank.