Bitcoin investors and traders have been left feeling very frustrated after their accounts were from by Australian banks.
Alex Saunders, a well-known Bitcoin and cryptocurrency expert took to Twitter to voice his annoyance, where he stated that National Australia Bank Ltd, Commonwealth Bank of Australia, Westpac Banking Corp and Australian and New Zealand Banking Group have frozen their clients’ assets, and are advising people to take their cryptocurrency assets to another exchange that is not related to a bank.
There are a number of different reasons as to why the banks would freeze peoples’ assets, but the main one is pointing to the fact that the usage of cryptocurrencies are causing people to move against the bank, which will overtime impact on their profit margins. However; it has been suggested that the freezing of accounts is actually down to regulatory requirements, and the fact that the banks must verify all of the funds of a client.
For many, this has not come as a surprise, and they believe that this bold move actually shows investors and traders that they need to have the right paper trail for all of the money that gets deposited into their accounts, as well as the money that they already have in there.
It is possible that other banks will follow suit. They are advising their clients to use other trading exchanges for everything to do with cryptocurrencies, even though this might mean that they are losing out on potential profits. Their understanding is that the regulatory environment, and protecting their business is the greater concern.
The move has certainly shown everyone that Australian banks really want to distance themselves away from such risky investments. If the client does not have as much choice, it might make them rethink where their money is being held.
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