Italy’s second largest bank, UniCredit, has been ordered to pay $144 million for wrongfully closing the accounts of a crypto miner. The bank is appealing against this decision.
Italy’s second largest bank, UniCredit, is receiving a $144 million fine after losing a case against the crypto miner. The bank had closed the account of the crypto miner, with the latter saying it was a wrongful one. However, the matter is not over and the bank appears to have filed an appeal against the decision.
crypto miners fight back
The decision was made in the court of Banja Luka in Bosnia and Herzegovina. The case was brought to court by a subsidiary of the Italian company Bitminer Factory, which calls itself the first and largest mining farm in Italy.
The company further stated that the account closure in relation to a startup project in the cryptocurrency mining sector with renewable energy in Bosnia and Herzegovina had got in the way of its ICO.
The bank had said that it does not enter into relationship or partnership with digital currency suppliers and exchange platforms. Many banks around the world including India are adopting this position, although the status quo is changing. The court noted that the bank did not show any written rules that would prevent it from interacting with customers in the cryptocurrency space.
Banks under surveillance due to economic sanctions
While many are criticizing crypto for its potential role in evading sanctions and facilitating illegal activities in Russia. However, it is the banking industry that is proving problematic in this regard.
UniCredit has also been in the news for its Russian businesses. The bank announced that it would completely write off its Russian business, including cross-border exposure, and would cost about $8.1 billion. It has also committed to buy back its own shares. However, this would depend on the losses associated with the assets belonging to Russia.
The European Commission has fined investment banks including Bank of America, Natixis, Nomura, RBS (now NatWest), UBS, UniCredit and WestLB (now Portigan) for breaching EU antitrust rules. He has been fined a total of $407 million for “participating in the bond trading cartel of the European government”.