Banks around the world have often shown a tendency of opposing cryptocurrencies for no apparent reason. In most cases, company transactions or accounts are frozen indefinitely even though there appear to be no discernable issues at hand. In this regard, HSBC and Barclays have frozen the bank accounts of a business owner who was actively operating on a cryptocurrency trading platform.
Another Bad Bitcoin Move by Barclays
It is apparent that conventional financial institutions do not like digital currencies in the slightest, especially since they pose a direct threat to their current business model. As such, harsh action against Bitcoin users is not uncommon in this day and age and for 50Cycles CEO Scott Snaith, the closure of his bank accounts comes as a complete surprise.
Both Barclays and HSBC have decided to freeze Snaith’s accounts even though peer-to-peer trading of Bitcoin is allowed within the UK. Moreover, Snaith claims that he traded only with other Britons whose ‘crypto accounts were duly verified’.
Banks Need to be Held Accountable For Such Illegal Actions
One thing that remains a mystery is why these banks closed the business accounts of a person acting entirely within the law. All of the Bitcoin trades executed by Snaith were conducted through his personal account, which was linked to the 50Cycles business account. Why the banks could distinguish between the two is a point of concern, and may need to be resolved through legal means.
It is not the first time a bank has decided to shut down the account of a Bitcoin trader. Such incidents have taken place numerous times in the past and will seemingly continue to happen until actual regulations are put in place all over the world.
It seems highly unlikely Snaith will have his bank accounts unfrozen by Barclays, even though HSBC has already reversed its ban. With that being said, Bitcoin activity is still being treated in many countries as though it is illegal.
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