Banks have slowly been coming around and changing their minds on the cryptocurrency market as of late, this is due to a variety of reasons, but one can point primarily to demand. One of these banks is a division of Santander based in Portugal, the bank had an issue as of late with Bitcoin transactions and was in the process of declining or actively preventing such transactions. This, of course, much to the confusion of many who were banking with the bank. They wondered why it was happening suddenly and seemingly, without any cause.
Change of Heart
El Banco Santander Totta was initially placing barriers to the processing of these transactions because they assessed that operators who facilitated the exchange of digital currency were in were possibly in violation of specific laws and thus, not operating in the realm of the regulated. The bank specifically assessed that these digital asset exchanges were engaging in providing a space for transactions in financial assets that were not yet regulated.
Many of their customers expressed concerns about these happenings and the bank paid attention and has given in to their customers, the bank has started to let these transactions pass.
The financial institution prevented transactions from passing that occurred form cryptocurrency exchanges like that of Coinbase, an exchange based in New York, and Bitstamp, an exchange that is based in the country of Luxembourg. Blocking transactions from widely known exchanges were certain to cause frustration among many, yet, the bank did so anyway.
The situation seemed out of the blue because Coinbase and Bitstamp have conducted all due diligence to meet the criteria set forth by the respective bodies of government to operate legally and without issue.
The exchanges are classified as virtual asset organizations and have passed through rigorous checks before being permitted to operate.
There were, of course, a slight decrease in accounts at the Portuguese bank because this event occurred, an event that would not only be a hassle for some but one that could have lost their client’s specific percentages of returns on their potential investments. A few clients have gone to other banks, and a few have requested that their local agencies for the protection of their rights as consumers, step in and look into the matter further.
The governmental institution that is in charge of protecting the rights of consumers did step in and commented that there was a legal foundation for the act of preventing these digital asset-based transactions.
Stepping back and Cleaning Up
The bank, for its part, has been in a clean up phase due to the backlash and has notified consumers via their local press publications that they are not in the process of preventing virtual currency based transactions and will not be having any stringent measures against consumers that are conducting transactions in the space.