Key Takeaways
- Standard Bank of South Africa Notifies Crypto Arbitrage dealers of account termination.
- Many Cryptocurrency dealers and experts in the country are challenging the Bank's decision.
- The Bank representative claimed that the action is taken to make sure that all the bank's clients follow the rules and regulations of the country, and the action is not aimed at discriminating against anybody or a business organisation.
According to Mybroadband, this financial institution's conduct has shook the country's bitcoin community. The group has asked the bank to explain the criteria used to decide which accounts should be closed.
Carel de Villiers, CEO of Swiftly, is one of many questioning Standard Bank's decision-making process. Despite denying that his business has an account with the bank, he finds it odd that the bank does not maintain strong customer relations with the arbitrage firms who do.
Their account was suspended due to the company approach's arbitrage business plan, the News said.
Swiftly's CEO and an unknown arbitrage dealer's assertion appears to be backed up by Revix's owner, Sean Sanders.
Despite not being an arbitrage trading organization, Sanders is quoted as saying that his business could only save money with Standard Bank after so many laborious meetings.
He was disappointed by the absence of adequate regulation in the nation, which puts individuals in the banking process at risk.
Defending the bank's decision, a Standard Bank spokesman said that the action is made to ensure that all customers respect the country's norms and regulations and is not intended to discriminate against anybody or any corporate organization.
He said that Standard Bank is committed to treating all customers equally while maintaining customer connections while adhering to the norms and regulations governing financial institutions in South Africa.
An official from the bank noted that the bank must utilize a risk management system to regularly evaluate and analyze all new and existing customers.
The South African Reserve Bank and Intergovernmental Fintech Working Group's position paper on cryptocurrencies was also noted as a possible influence in the bank's decision.
Is this an indication that the crypto will not be embraced in South Africa very soon?
