Cryptocurrency companies plunge in Ireland
Cryptocurrency services are facing a nosedive in Ireland. Most Banks in Ireland has withdrawn services for cryptocurrency accounts.
Reeking Regulatory Capture
Eircoin, supposedly the only bitcoin broker in Ireland was forced to stop trading on the account of Banking and Payments federation of Ireland (BPFI) refusing to provide services to crypto companies. Dave Fleming, the co-founder of Eircoin told, “We have been shuttered due to defensive and negligent banking system”. He also claimed that shuttered brokerage ‘reeked of regulatory capture’ which is in contradiction to the arms open wide attitude of IDA Ireland, Irish Times reported. Fleming added that banks should be denied the prosecution of companies for illegal activities. Thus, they don’t reserve any right to refuse services to cryptocurrency firms.
Bitcove, a cork based Bitcoin exchange also expressed its grievances on the current situation. Bitcove had received the best start-up award from The Bank of Ireland. However, Bitcove claimed that lenders including The Bank of Ireland have closed their accounts.
However, the Irish Banks denies any prejudices against cryptocurrency companies. AIB, one of the leading Irish Banks dismissed the allegations of declining services to crypto companies. The bank asserted that it “[doesn’t] discriminate in relation to providing banking services to cryptocurrency companies nor [has it] been systematically exiting such companies.” Banks also signified that crypto companies had to comply with regulations like Know Your Customer (KYC) and Anti money Laundering (AML).
These allegations arose after the Irish Blockchain Expert group (IBEG) launched Blockchain Ireland. Backed by IDA, Blockchain Ireland aims to promote and enhance Blockchain industry in Ireland. This platform enables people to set up new business ventures and promotes the country as a supreme location for cryptocurrency based business. The current condition is a major setback for all the Blockchain entities in the country. Cryptocurrency and Blockchain businesses has either stopped trading or has opened foreign accounts to keep their businesses afloat.
Crypto businesses and exchanges have been shunned by banks in various other countries like Finland, Poland and Chile. Even the Reserve Bank of India has declined services to persons and companies dealing with cryptocurrency. Banks which rejected all crypto transactions and companies had strong reasons like fraud and high transaction volumes.
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