News making rounds on the internet seem to indicate that Nedbank, one of the largest banks in South Africa, has frozen bank accounts of cryptocurrency exchanges but news reaching us indicates otherwise.
As familiar as this news sounds, the story is far from what is happening on the ground. According to our sources at several big cryptocurrency firms in South Africa, Nedbank has not dropped any working relationships with crypto exchanges.
However, in an email response to ITWeb, Nedbank did mention that they are looking to form a more stable stance on virtual currencies. The email says
“Nedbank is in the process of assessing its position in respect of virtual currency dealers/traders.”
What’s Happening? It’s Not As Bad As It Seems
Nedbank does offer banking services to cryptocurrency-related business but has never allowed cryptocurrency exchange deposits via their accounts.
Basically, if Nedbank should close any accounts, it will have very little effect on cryptocurrency trading and the entire ecosystem.
Speaking to BlockNewsAfrica in an exclusive interview, Gareth Grobler, CEO iCE3x.com mentioned that the headline is misleading.
Nedbank have never allowed crypto currency exchange operators to use their facilities for the purposes of client deposits. Nedbank have historically provided operational bank accounts for the purposes of running a business ie. staff wages, bills etc. iCE3 does have a bank account with Nedbank but this is solely for operational purposes and NOT for customer deposits. We have not received any indication that our account is affected at all. I personally view this “news” as nothing more than a way to get media attention by some of the crypto operatorsGareth Grobler, CEO iCE3x.com
South African exchanges have seen great success with high trade volumes in recent times. Banking infrastructure seems to threaten this as First National Bank closed banking operations with cryptocurrency exchanges last year.
Most exchanges have indicated several plans to ensure traders’ funds are secure, and trading can continue smoothly regardless of new developments from partner banks.
BlockNewsAfrica is following the story closely and will bring you updates as and when we get any. Join us on Twitter to follow this story.