FNB shuts down cryptocurrency-linked bank accounts

Jamie McKane

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FNB shuts down cryptocurrency-linked bank accounts

Major South African cryptocurrency exchanges - including Luno and ICE3X - have been notified by FNB that their bank accounts will be closed.

According to a letter seen by MyBroadband, FirstRand Bank told the cryptocurrency exchanges that it has been considering its "risk appetite" regarding virtual currencies and related exchanges, and has decided to discontinue the provision of banking services to certain companies.
 

quovadis

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What would be the reason for this? Why is the bank at risk by providing services to an exchange?
I would imagine the KYC and financial regulatory oversight would be problematic especially since (in the case of Luno) is an offshore entity.
 

dj2381

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It will stop you cashing out in SA after all the banks close these accounts.

As we saw with the Guptas, after one bank does this the others follow.
I bet you've been waiting a long time for something like this, where is your $1000 BTC btw?
 

fragtion

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It will stop you cashing out in SA after all the banks close these accounts.

As we saw with the Guptas, after one bank does this the others follow.
Fortunately, I don't plan on cashing out Bitcoin for FIAT any time soon. On the contrary, I'd love to convert every last Rand I have into Satoshi's. If the prospect of that didn't also imply crippling my ability to do business in this country, I'd have probably done that a long time ago already. But it's going to take a while before the mainstream realizes that Crypto is the currency of the future.
 

biometrics

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Fortunately, I don't plan on cashing out Bitcoin for FIAT any time soon. On the contrary, I'd love to convert every last Rand I have into Satoshi's. If the prospect of that didn't also imply crippling my ability to do business in this country, I'd have probably done that a long time ago already. But it's going to take a while before the mainstream realizes that Crypto is the currency of the future.
Good luck with that. :D
 

|tera|

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The problem wotth Crypto Currencies are the same as it is for many products. Which it is, a product, like real money. Therefore nobdy, even these exchanges have realised that they actually do need Banks.
Without Banks, aunt Rosie and uncle Tom won't be able to trade and use Crypto as a product. The auntie and oomie is not clued up with the tech knowledge required to use it as it is currently.
It's a basic form of Business sense.
Any products and services a Company or Business offers need to be unfragmented.
Fragmentation in Business means you are not giving priority to all areas of your Business. So, FNB. Create your own Crypto Currency.
 
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