ACCC Investigates Banks Shutting Down Bitcoin Company Accounts

By Oct 31, 2015 7:00 PM EST

The ACCC has begun investigations into Australia banks, as they have recently shut down the bank accounts of several Bitcoin companies stationed in Australia, including exchanges such as Bit Trade and Buyabitcoin. While both sites seem to be functioning at normal capacity at the time of writing, motive behind the bank’s actions remains a mystery. With no explanation why, it has been reported that 13 accounts have been closed with 17 other Bitcoin companies having received similar letters.

Also Read: European High Court Decides Bitcoin Should be Tax-Free

BitTrade AustraliaThe letters were reportedly from Westpac Banking Corporation and Commonwealth Bank of Australia, but according to Ron Tucker, chairman of The Australian Digital Currency Commerce Association, “all large Australian banks were shutting the door on Bitcoin companies”. Ron also said that banks were being unresponsive to inquiries regarding why their accounts were closed:

“Our members have been unable to obtain any formal clarification on the reasons for closure, except for references to policy or risk. Just what policies or risks these are have not been specified”

To the avail for the Bitcoin companies, the ACCC (Australian Competition and Consumer Commission) has begun looking into this bank account genocide. Thanks to a letter from Senator Mathew Canavan to Rod Sims stating Senator Canavan’s concerns of banks abusing their powers to shut down competition from emerging companies, investigations have begun.

BuyABitcoinLabor Senator Sam Dastyari also stated concerns regarding banks closing the accounts of digital currency companies, as it comes at a time where those same banks are interested in integrating blockchain technology for their interests. Senator Dastyrai believes that “banks must comprehensively and clearly explain why they are de-banking small digital currency companies while moving into the digital currency industry themselves,” which is easier said than done.

“The banks can put their mouthguards in and get in the ring, but all anyone has asked for is a credible explanation and I don’t think they’ve got one…. If the banks are looking for another excuse to come to Canberra I’m only too happy to oblige them.”

While the investigation is in its early days, and started with simply requesting banks to explain their actions, ACCC Chairman Rod Sims hopes to resolve the problem completely within a couple of months. It is understandable why banks might feel threatened in the presence of the increasing popular Bitcoin, but banks still need to be held responsible for their actions.

Why do you think Australian banks are specifically shutting down the accounts of companies that handle cryptocurrency? Let us know in the comments below! 

Photo Sources: Featured Image, Article Image One, Article Image Two

Originally posted on: ACCC Investigates Banks Shutting Down Bitcoin Company Accounts

Facebook Comments

  • Sun Drez

    Why are banks shutting their doors? Very simple, they have controlled
    and regulated people lives and livelihoods for centuries and now they are on their
    way to poor house… Food stamps and shelters for these Bankers…..
    Now Banks believe they are above governments, and can use
    scare tactics to keep the masses afraid to adapt. Now Bitcoin is evolving…. And
    Banking systems recognize they are going to lose control… With this collapse,
    the white collar type who has made their money using their control to get
    wealthy by taking advantage of lending practices by using Peter’s money to lend
    to Paul…. These bankers and white collar crooks will be decimated, and the new
    generation of brilliance and anti-corruption will unfold…
    People may laugh, but the fact is the new generation is not
    willing to continue to sell mother earth down the road to prosper… As the
    bankers would put their mothers, sisters and daughters on the street to sell
    themselves to make a dollar…. I do hope Australia does put the Banking white collar crooks
    in their place… Well behind Bitcoin….

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