Norwegian cryptocurrency exchange Bitmynt AS has lost its case against Scandinavian financial services giant Nordea, local news E24 reports May 4. The ruling concludes a case, in which Bitmynt founder Sturle Sunde sued Nordea for closing the exchange’s account.
Sturle Sunde first brought legal action against Nordea in December of last year, when Nordea closed Bitmynt’s account over concerns of inadequate anti-money laundering mechanisms and terrorist financing risks. According to local news digi.no, this made Sunde ineligible to register with the Brønnøysund Register Centre to establish limited liability. The ruling of the Oslo District Court reads:
“The Court is, after a global assessment, [in] no doubt that the risk of money laundering and transactions related to criminal offenses is clearly elevated by Bitcoin trade, although Bitcoin trading is now also largely done [under] legitimate conditions.”
The court found “it clear that this risk constitutes an objective reason for the bank to deny customer relationships” under a provision of the Finance Contracts Act. Sunde said he is disappointed in the decision and that the court’s verdict “in practice” bans Bitcoin trading in general in Norway. He maintains that the exchange did not violate any laws, and plans to appeal the decision…