Johannesburg, South Africa. (News of The South) – South Africa’s FNB Bank is shutting down the bank accounts of cryptocurrency trading platforms.
The bank identified risks associated with cryptocurrency platforms and the lack of appropriate regulations as reasons for its prudent course of action.
“FNB can confirm that it has given reasonable notice to terminate its banking services to virtual currency exchanges and intermediaries trading in virtual currency,” read a statement from FNB.
Affected currency exchanges include VALR.com and Luno, co-founder and CEO at VALR.com, Farzam Ehsani, was not happy with the decision.
“They haven’t given any indication of what risks they are worried about, a unilateral decision will take effect in 2020, but we don’t know the exact date,” said Ehsani.
In January, the South African Intergovernmental FinTech Working Group, made up of the Reserve Bank, the Financial Intelligence Centre, the Financial Sector Conduct Authority, the South African Revenue Service and National Treasury issued a consultation paper on policy proposals for crypto assets.This paper wants a regulated way forward for crypto-asset service providers in South Africa.
In June, the Financial Action Task Force, a global standards-setting body of which South Africa is a member, issued Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers”, which similarly provides a regulatory framework for the new industry.
The Bank said the decision to terminate banking services to these entities does not apply to individual customers.
Comments
About Author
