Bulgarian Banks Shut Down Cryptocurrency Accounts

It looks like a few banks in Bulgaria are not looking to deal with cryptocurrencies or cryptocurrency exchanges. Just recently, a few of the major banks in the country have cut ties to the cryptocurrencies located in that region by shutting down their accounts. To further aggravate matters, Bulgarian banks are also making it more difficult for cryptocurrency users to transact with global cryptocurrency exchanges. It is becoming difficult for these users to be recipients or to be senders of payments when it comes to utilizing cryptocurrencies. The cryptocurrency exchanges that operate, or used to operate, are slowing down and taking a break from operations while they sort out how to deal with this new, abrupt, issue.

The issue is that at the moment, these cryptocurrency exchanges are, in a sense, beholden to the banks. They are in this state because of a couple of reasons.

First, if they want to exchange fiat and crypto, this means that they have to operate in someone else’s territory. They have to operate with the permission of those who came before them, who hold the keys to fiat, the traditional banking system. They have to deal with an entrenched, legacy system to be able to provide their crypto oriented users with a good user experience.

Bulgarian banks may have their own reasons as to why they want to stop this. They may feel threatened, as they try to figure out what role they play in this changing ecosystem of payments. Thus, clinging on to what they have right now. Banks may think that there is a drawback to being able to process these payments as it may be more difficult to do so with cryptocurrencies due its very nature. Bankers are looking to minimize riskiness and since they think that this may be riskier than regular transactions, they may want to shy away from it.

Whatever reason it may be, the banks haven’t really issued any strong reasons as to why they have done cut ties with crypto, but they did it in a manner that wasn’t very diplomatic. This comes as a shock to many of these cryptocurrency exchange operators. It can’t be a shock to the banks, though, because it all happened in a symphonic manner, carefully planned and orchestrated among all of those major banks in the Bulgarian nation. This was an action done solely in the light of the context and conditions of the private sector. There was no public mandate by the government on the matter of the cryptocurrency industry (users, exchanges or other parties involved in the system) and they didn’t take any action against them.

It seems that there was some sort of collusion among all the banks for whatever reason and this has resulted in issues for the growing community of cryptocurrency users.

The parties affected

Information from a local bitcoin leader posted on a bitcoin forum and stated:

We expected this to happen, but not so fast. It seems that the panic of the financial system is quite large, despite the bantering words on the banker’s day.

The user went to on to talk about what it means for the banking system in general and how it happened:

“In force last night, all banks in Bulgaria blocked the accounts of companies whose activities are related to the purchase and sale of battlefields. They banned translations to international battlegrounds. A struggle for the survival of the banking system is starting not only in Bulgaria but also around the world. Laws do not matter. Resources will not be selected. Any ban on and abuse of a dominant position on the part of the financial services firm, as Bitkine (bitcoin) taught us, leads to a new explosion of technological breakthroughs in IT.”

This is what a potential future looks like:

“More use will be made of the Battlefield Exchanges, where bank transfers are from one physical or legal person to another, such as the most common bank transfers. There is no way to ban one person from buying another.

Within a few days, a meeting of the Management Board of the Bulgarian Battle Association will be held, and we will propose an action plan and recommendations to the BattleKnight community in Bulgaria. If someone established and operating a Bitkine (bitcoin) business is not a member of BBA but wants to take part in this meeting, let them contact me.”

By | 2017-12-14T03:56:12+00:00 December 14th, 2017|News|0 Comments

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