National Australia Bank to shut down Bitcoin accounts on claims of major risks

Monday 14 April 2014 10:20 CET | News

The National Australia Bank (NAB) has announced that Bitcoin implies major risks which cannot be overlooked and, as a consequence, has decided to shut down the accounts of business customers who trade in Bitcoin and other crypto-currencies on the 2nd of May 2014.

NAB has sent letters to business customers, informing them on its decision.. The letters say that an internal review concluded that ties with digital currency providers pose a major level of risk to NABs business. NAB has never banked or traded in digital currencies, but has provided banking services to companies that do.

The decision comes after recent moves by the Bank of Ireland and the Bank of Montreal to distance themselves from customers who trade in digital currencies.

Professor David Glance, a Bitcoin expert and the director of software practice at the University of Western Australia, cited by The Guardian, views NAB’s move as a too exaggerated action because the claims are not supported by real motives. He claims that local Australian digital currency providers are smaller than massive exchanges such as the bankrupt Mt Gox and, as such, posed far less risk.

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Keywords: NAB, Australia, Bitcoin, digital currency, crypto-currency, trade
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce