Capitec has blocked EFT and immediate payments to cryptocurrency exchanges from its smartphone app and business web interface.<\/p>\n\n\n\n
The issue was first highlighted by Shiftly co-founder and CEO Carel de Villiers.<\/p>\n\n\n\n
When MyBroadband asked Capitec about the change, the bank said it was an anti-fraud measure.<\/p>\n\n\n\n
“Capitec is committed to protecting our clients from fraud, which is why we made the decision to block EFT and immediate real-time clearing payments to crypto exchanges on our app and business web interface,” a spokesperson said.<\/p>\n\n\n\n
“We recognise the increasing interest in cryptocurrencies and encourage users to utilise Capitec Pay as a secure alternative for transactions.”<\/p>\n\n\n\n
Capitec said it was actively working with crypto exchanges that have not yet integrated Capitec Pay to expedite this process.<\/p>\n\n\n\n
“Ensuring the safety and security of our clients’ financial transactions remains our top priority,” it said.<\/p>\n\n\n\n
This change came after Capitec announced that its app now communicates with its Fraud Center in real-time.<\/p>\n\n\n\n
It said the app will warn customers and block payments in real time if any beneficiaries have reported or confirmed fraud against them.<\/p>\n\n\n\n
For example, even brand new bank accounts created at any institution will be blocked for all Capitec clients if there is confirmed fraud reported against it.<\/p>\n\n\n\n
According to Capitec, it is the first bank to do real-time and on-the-wire interception and blocking of suspicious payments to protect clients.<\/p>\n\n\n\n
Farzam Ehsani, the co-founder and CEO of cryptocurrency exchange VALR, said<\/a> only Capitec was limiting payments to crypto platforms this way.<\/p>\n\n\n\n He advised Capitec customers funding their VALR account to use a South African credit card, or use another bank account.<\/p>\n\n\n\n Based on Capitec’s feedback, regular retail customers should be able to fund their crypto accounts by EFT using Capitec’s web banking interface.<\/p>\n\n\n\n This change from Capitec is reminiscent of South African banks blocking clients from buying cryptocurrencies on international exchanges<\/a> with their credit cards.<\/p>\n\n\n\n However, in that case, the Reserve Bank’s Financial Surveillance Department compelled them to do so.<\/p>\n\n\n\n The banks told MyBroadband that South Africa’s exchange control regulations do not permit people to buy crypto assets overseas using their credit or debit card.<\/p>\n\n\n\n