CoinSpot is blocking Australian deposits
Bank brawls have led to a temporary ban.
Cryptocurrency exchange CoinSpot has temporarily blocked users from making deposits in Australian dollars.
"We have temporarily disabled new AUD deposits," a note from CoinSpot to customers reads. "Withdrawals and buy/sell are not affected. The temporary restriction on AUD deposits will remain in effect until at least the first week of the new year. AUD withdrawals, coin deposits, buy/sell orders and trading on the platform will continue to operate as normal."
CoinSpot said the temporary ban was due to banks being increasingly restrictive about dealings with cryptocurrency providers. "Unfortunately Australian banks have been so far unwilling to work with the digital currency industry which leads to frequent account closures and strict limits on accounts."
"We assure you that we will continue to work on establishing a relationship with a banking partner so we can resume accepting AUD deposits as soon as possible."
CoinSpot's ability to accept Australian dollar deposits has made it a popular choice for Aussies in the competitive cryptocurrency market, where many providers take a US-centric approach.
CoinSpot argues that the absence of easily-accessed markets may lead Australians to choose less reputable providers. "As the demand for bitcoin and other crypto assets skyrockets it is in everyone's best interest to ensure we have regulated, safe and stable digital currency service providers instead of pushing Australian consumers underground, to potentially unsafe vendors," its note said.
The rising price of bitcoin and other cryptocurrencies has seen an increasing interest in exchanges. The emergence of futures trading for bitcoin shows that cryptocurrency is now being taken seriously by financial markets, but debate over whether the cryptocurrency bubble is about to burst continues.
Confused about how cryptocurrency works? Check out finder's comprehensive guide to help you get started.
- Cryptocurrency crash: Here’s why the markets are plummeting
- Independent Reserve has a new KPMG cryptocurrency tax estimator
- IMF director: Central banks should consider issuing digital currencies
- Australia sees the savings in a “smart money” cryptocurrency test
- Marshall Islands national cryptocurrency is a go