October 19, 2021

South African Bank FNB closes cryptocurrency exchange accounts

One of the five largest South African banks, FNB will stop serving cryptocurrency companies in April next year.

At the same time, the organization states that withthe emergence of clear cryptocurrency regulation in South Africa, bank policy may change. In a letter quoted to the South African media by MyBroadband, the FNB announced a decision to stop serving cryptocurrency exchanges. The document says:

“FirstRand Bank has been consideringrisks in relation to virtual currencies and digital asset exchanges. In this context, the bank decided to stop providing banking services to cryptocurrency exchanges and / or organizations trading virtual currencies. ”

Popular African cryptocurrency service Lunoconfirmed this news. According to Luno CEO Marius Reitz, FNB will close cryptocurrency exchange accounts at the end of the first quarter of 2020.

FNB decision is related to the lack of formalregulations for cryptocurrency industry in South Africa. In addition to tax laws, the government has yet to adopt a regulatory policy to manage virtual currency trading in South Africa.

Another VALR South African exchange said thatthe decision of the bank will not affect its activities. The exchange maintains contact with the FNB to ensure a smooth termination of service. Other major banks in South Africa have not yet followed a similar policy. Exchanges hope the FNB decision is a single incident.

The Bank noted in a letter to the exchanges that it will reviewa decision if regulators adopt unambiguous regulation regarding cryptocurrencies. Earlier this year, South Africa created a group to develop cryptocurrency and blockchain regulation. Around the same time, it became known that all cryptocurrency transactions in the country will be monitored.

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