UniCredit, Italy’s second-largest bank, has been fined $144 million for improperly closing crypto mining accounts. The bank has filed an appeal against the verdict.
UniCredit, Italy’s second-largest bank, has been fined $144 million after losing a case against a cryptocurrency miner. The bank had closed the crypto miner’s account, which the latter claimed was an error. The case is not done, however, since the bank appears to have filed an appeal against the ruling.
Bitcoin miners fight back
The decision was made in the Bosnian and Herzegovina court of Banja Luka. The complaint was filed in court by a subsidiary of the Italian company Bitminer Factory, which claims to be Italy’s first and largest mining farm.
According to the firm, the account closures hampered its ICO “in relation to a startup project in the cryptocurrency mining sector using renewable energy in Bosnia and Herzegovina.”
According to the bank, it does not develop agreements or collaborations with digital currency suppliers or exchange platforms. Many banks around the world, including in India, are taking this stance, however the status quo is changing. According to the court, the bank failed to provide any written guidelines that banned it from communicating with bitcoin clients.
Banks are being scrutinized when economic penalties take effect.
Many have criticized cryptocurrency for its potential role in Russia avoiding sanctions and aiding illegal operations. The banking business, on the other hand, has proven to be problematic in this regard.
UniCredit has also made headlines for its Russian operations. The bank said that it would write off all of its Russian operations, including cross-border exposure, at a cost of around $8.1 billion. It also intends to repurchase its own stock. However, it would be contingent on the losses associated with Russia-related assets.
The European Commission has also punished investment banks for breaking EU antitrust rules, including Bank of America, Natixis, Nomura, RBS (now NatWest), UBS, UniCredit, and WestLB (formerly Portigon). They were fined a total of $407 million for “participating in a European Government Bonds trading cartel.”