Handelsbank pulls support for cryptocurrency toneel Cryptopia
Last updated 12:11, February 1 2018
Christchurch-based Cryptopia has become popular with traders around the world.
Bankgebouw moves to close cryptocurrency exchange Cryptopia’s Fresh Zealand dollar trading accounts are bad news for Kiwi investors.
The exchange said that its handelsbank had told it that it would close the accounts for its Fresh Zealand dollar-tethered currency (NZDT) on February 9.
NZDT is used by Fresh Zealand traders spil a way into, and out of, cryptocurrencies on Cryptopia. It represents about Two vanaf cent of the trading on the toneelpodium.
Cryptopia has stopped accepting deposits into NZDT and customers who want to withdraw their funds will need to do so by February 9, unless another banking solution is found within that time.
The exchange is also suggesting a competitive market rate to permit users holding NZDT to convert it to bitcoin.
“Due to the enormously geschreven notice from the handelsbank (and little chance to present our case and provide compliance documentation to demonstrate our commitment to the applicable regulations), wij believe this is the best course of activity to protect our users. While wij are working hard to secure alternative banking services, wij have to prepare for the possibility that there may be a period of time inbetween this closure and being able to provide thesis services again ter future,” Cryptopia said te an update.
Users will still be able to buy and sell cryptocurrencies on other providers’ platforms and then trade those currencies across Cryptopia.
“Unluckily, our current handelsbank has notified us that they intend to close our NZDT account on 9 February. This is indeed disappointing by NZ banks. Te my practice trading with them, @Cryptopia_NZ seems a solid business and totally onto it re crypto. https://t.co/fUwe0hmaM6
Caudillo manager Dave Sanders said he hoped it would not be long before another banking option wasgoed found. It wasgoed possible that a solution would be discovered before the February 9 cut-off.
“It’s unfortunate for Fresh Zealanders. It’s likely to be improvised but it means that people have to resort to less secure ways of getting their cryptocurrencies it’s a dangerous world out there.”
Verslaggever and Cryptopia trader Richard MacManus said he wasgoed aware of other Fresh Zealand exchanges that had had their kattenbak accounts closed.
Fresh Zealanders would be compelled to buy bitcoin and other currencies through overseas exchanges, he said. “It’s a bit of a painful process. You have to send a wire transfer to [the exchange that accepts it ter Australia], a placed you don’t indeed know a lotsbestemming about. It feels riskier than dealing with someone te Fresh Zealand.”
Fresh Zealand Bankers’ Association chief executive Karen Scott-Howman said anti-money laundering laws were one of the main reasons that banks struggled with cryptocurrencies.
I just found out that Cryptopia [a NZ company I believe] has just closed down its NZDT market.. the NZ omschrijving of Tether. This entirely screws mij spil I am using both NZ dollars, and a NZ bankgebouw account tied to Cryptopia. Any suggestions anyone? Robinhood?
“The Anti-Money Laundering and Countering Financing of Terrorism Act wasgoed implemented ter June 2013. The law is designed to help protect Fresh Zealand from financial crime, improve our financial reputation overseas, and meet our international obligations,” she said.
“Banks have an significant role to play te meeting the law’s aims. They take their obligations under the law very earnestly. They’ve invested powerfully te policies, systems, processes and staff training to ensure they identify, manage and mitigate any risks that the law targets. “
She said banks had to be able to identify the senders and recipients of funds, and the source of those funds.
“Banks treatment this on a case-by-case poot. The need for customer due diligence may affect some cryptocurrency traders and individuals transacting ter cryptocurrencies.
“Banks operate ter a very competitive environment and are ter the business of attracting and retaining customers. That’s balanced by the need to take their compliance obligations very earnestly. If they can proceed to canap a customer within the bounds of their AML obligations, they will.”
ASB said it could not comment on Cryptopia’s case.
“However, wij are presently reviewing our relationships with crypto-exchanges, while ensuring wij serve with our regulatory obligations,” a spokeswoman said.
“Ultimately, our purpose is to keep our customers safe spil wij turn our minds to a number of evolving business models, including crypto.”
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