South Africa: First National Bank is closing accounts of Bitcoin exchanges

The South African Bank FNB has obviously got cold feet and the Bank accounts of all crypto-closed exchanges. The risk was too great, told the fifth-largest Bank in South Africa.

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The First National Bank (FNB) of South Africa until the end of March 2020, all Bank accounts of Bitcoin exchanges closing. With crypto-currencies, the risks associated were simply too large, the fifth largest Bank in South Africa. By the decision of the FNB, among others, the South African crypto-exchanges Luno, ICE3X and VALR are affected. The FNB added that they could change their decision if the provisions for the industry were clarified. The question of the blog tech Central, whether the FNB'm afraid of to the competition through a crypto-company, remained unanswered.

The South African Blog, Mybroadband published a notice in the excerpts. It States:

The FirstRand Bank checks for some time now, your appetite for risk in relation to virtual currencies and virtual currency exchanges. In this context, the Bank has decided to provide banking services to virtual currency exchanges and/or companies that trade in virtual currency, act/adjust. Future regulatory clarity can lead us to reconsider our decision.

Bitcoin exchanges allowed to react

The crypto-exchanges confirmed to have the letter of termination of the FNB receive. Since all the companies concerned have accounts with other banks, the impact of the FNB-decision on the industry is very limited.

We confirm that the FNB has informed us of their decision, the provision of banking services for the entire crypto-currency industry, including stock exchanges and other companies that deal with crypto-currencies, set,

Mybroadband quoted the VALR-co-founder Farzam Ehsani.

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A South African intergovernmental FinTech working group works according to Ehsani, already regulating Bitcoin exchanges in South Africa.

We hope the FNB will review its decision in the light of future regulatory clarity, particularly in light of the increasingly favorable regulatory environment for the crypto-currency industry, produced both in South Africa and abroad, said Ehani Mybroadband.

Also, Barclays, the third largest Bank in the United Kingdom, has recently ended his relationship with Coinbase, one of the largest crypto-currency exchanges in the world.

In addition, have frozen several Bulgarian major banks, the accounts of all the country's own crypto-exchanges and all the Token transactions blocked.

The decision of Barclays and FNB are another sign that the large global banks for transactions with crypto-exchanges are increasingly cautious.

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regulatory-ECHO: China and Telegram, rotate the skewer to the BRICS Alliance against the SWIFT form of monopoly and New regulations for crypto-planning their own crypto-currency value of the Depositary: Germany, on a good way to "crypto Heaven" #Bitcoin exchange#regulation#South Africa