CADE asks Federal Revenue for information on CNAE exchanges of bitcoin and cryptomoedas

CADE requests information from the IRS on bitcoin and cryptomoedasNOTÍCIAS exchanges

The Administrative Council for Economic Defense (CADE) sent a document to the Federal Revenue Service requesting information on the impact of the National Classification of Economic Activities (CNAE) on companies in Bitcoin and Cryptomoedas.

According to the document, CADE wants to know what impact the CNAE may have within the 1888 Normative Ruling.


„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 Federal Revenue Service about the repercussion that such fact may have on the application of the Normative Instruction RFB No. 1888, which „establishes and disciplines the obligation to provide information relating to transactions carried out with cryptoactives“, the document highlights.

The Central Bank acted with carelessness and escaped from its obligation,“ says Fernando Furlan, for ABCB, to CADE.
The paper also asks that if the IRS has further considerations about the activity of credit companies in Brazil it report to CADE.

„Please provide any other information that you consider relevant or necessary for this Council’s analysis of the matter“.


Exchanges X Banks

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

The initial proceedings alleged, among others, that the banks closed accounts of Bitcoin companies in an anti-competitive manner.

ABCripto says that banks ‚act cynically‘ in responses to CADE
The case has been under review since June 2018 and has even had a CADE Superintendency decision in favour of banks and against cryptomime companies.

One of CADE’s commissioners, however, disagreed with the Superintendency’s decision and the case was re-examined by CADE.

CADE has since notified public institutions such as the Internal Revenue Service and the Central Bank to present a position on specific issues in the case.

Exchanges of Bitcoin, banks and fintechs have also been notified to provide clarification.

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.


„This opens up the possibility of closure without specifying the reasons, subject to the procedures provided for in the rules,“ the Central Bank said.

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

In the case of exchanges of Bitcoin, the Central Bank states that banks may close current accounts without specifying reasons
In this way financial institutions are free to establish requirements for opening 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,“ said the Central Bank.