Australia: The country's big banks freeze the accounts of bitcoiners

While cryptocurrency is a technology of the future for many, it is considered a threat to traditional financial institutions. It seems that some Australian banks have decided to take the lead on this "threat", and this by blocking certain transactions and accounts related to digital currencies.

Australian "Big Four" Could Oppose Bitcoin Trading
Australia is one of those countries seeking to regulate bitcoin. We had seen recently, with the elimination of double taxation by the Australian government. But the banks of the country, meanwhile, feel threatened by this new technology that could perhaps one day sign their obsolescence. The beginnings of a reaction from them have recently been shown.

Commonwealth Bank, Australia and New Zealand Banking Group (ANZ), National Australia Bank (NAB) and Westpac Banking Corporation have decided to freeze the accounts of some of their clients who are suspected of trading in bitcoin.

Obviously, we know the propensity of the crypto community to quickly flood social networks in case of bad news. This time again this has not escaped the rule, and the victims of the freeze have been very active on Twitter. The "big four" initiative (nickname given to the four banks) is described as "disgusting" or "appalling". Some of them even threaten to change banks.

Blocking transfers to crypto exchanges
In addition to freezing customer accounts, the four financial giants would go so far as to ban transfers to multiple crypto trading platforms such as Coinbase, CoinSpot, CoinJar or BTC Markets. This other information was revealed by Nugget's News Australia who tweeted:
"@NAB @CommBank @WestpacNZ and @ANZ_AU have all frozen customer accounts and transfers to @BTCMarkets @coinspotau @GetCoinJar @coinbase. Banks can fight, but people want control of their money. "

This tweet from Nugget's News Australia further amplified discontent among bitcoiners, who did not hesitate to comment on the news in turn.

For example, Mick Sullivan tweeted:

"Great way to lose customers ... Banks should focus on how they can invest in cryptos rather than preventing customers from spending their own hard-earned money. "

Warning: this is not a crackdown
However, no mention of a ban on digital currencies has been issued by the banks. All have invoked anti-money laundering laws, or other regulatory requirements. For example, a spokesperson for the National Australian Bank (NAB) intervened, saying:

"Although we do not support non-regulated currencies, NAB does not revoke the rights of individual customers to buy digital currencies. Spokesperson for NAB, interviewed by The Sidney Morning Herald

The reasons given seem to vary from bank to bank. Sometimes, it was clearly stated that cryptocurrency transactions were not accepted, thus blaming the customers. For example, a regulation published in June 2017 for all Combizz accounts at Commonwealth Bank specifically excluded digital currencies.

"It is possible to refuse to make an international transfer [...] when the recipient account was previously linked to a fraud, or attempted fraudulent transaction, or when a bank account is used to facilitate payments in Bitcoin or other digital currencies [...] »

A blur in the regulation
The situation is however not very clear at the moment. For example, the CoinSpot exchange has announced that it will "impose a temporary restriction on all forms of deposits in AUD" as a result of "problems with the banks".

"We assure you that we do not like the situation, but unfortunately, Australian banks have not wanted to work with the digital currency industry, which leads to frequent account closures and strict limitations. on these accounts. »CoinSpot Announcement

The founder of CoinSpot has also intervened and - if he has not noticed a widespread problem - has been informed about recent developments. He also said he was watching the situation closely.

"We are aware that, on occasion, banks freeze payments while clarifying with their clients that funds have not been fraudulently sent to their accounts. This is the simplest and most efficient procedure for banks, and it protects everyone. Russel Wilson, founder of CoinSpot.

A spokeswoman for Westpac also made similar comments.

"When we can not ensure the origin of transfers, we can act in a way that respects Australia's anti-money laundering obligations. Westpac Spokesman, interviewed by The Sydney Morning Herald

The tension is rising between the crypto community and the Australian banks, so it would be good to follow the situation very closely! And remember, never give an argument to justice to fall on you, always scrupulously declare your income!