FNB Closes Accounts of Cryptocurrency Exchanges

All exchanges and companies operating in the territory of South Africa and working with cryptocurrencies received such letters from First National Bank, informing that the bank’s management had reviewed the risks of digital currencies and decided to close the exchanges’ accounts.

For each company, the termination period of the account is determined by the agreement of the parties. The decision can be revised after a clear regulatory policy is developed in South Africa.

The Luno Africa crypto-exchange general manager Marius Reitz confirmed he has got the letter too. He commented:

Reitz said Luno is not worried about its future. This step will not have much impact on servicing existing customers, as the exchange has an agreement on servicing with other banks.

Regarding the FNB decision, a similar trend is not unique to the South African region. Digital currencies are new, and their regulation is underway around the world. The regulatory issue remains the most difficult for cryptocurrencies so far.

Representatives of other major exchanges expressed the same opinion. The ICE3X and VALR teams in an interview with local media confirmed they received notifications, but are not particularly worried about this. They have accounts for working with cryptocurrencies in other banks.

The FNB representative refused to comment on the situation, citing confidentiality of correspondence with bank customers. But he thinks, the restrictions will be removed when legal issues of cryptocurrencies are more clear.

In contrast to the situation in South Africa, India, which wanted to ban cryptocurrencies for months, is reducing the regulatory climate: the local government will not ban crypto exchange and cryptocurrencies in general.