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Scott Snaith, owner of 50cycles, an e-bike company, recently froze his bank accounts from two major UK banks. Snaith is accusing both banks of discriminatory practices due to its involvement in cryptocurrency trading. The case follows a pattern of similar events in the United Kingdom and Ireland.
Between HSBC and Barclays
Second iNews, Snaith had two personal accounts and one blocked by HSBC and Barclays at the beginning of August. Snaith firmly believes that the freezing of accounts carried out by both banks is due to its commercial cryptocurrency activities. This conclusion is based on the fact that its accounts were closed only a few hours after the exchange of Bitcoin for fiat money via a registered P2P trading platform.
Snaith believes that the action taken by both banks constitutes financial discrimination, stating:
My two bank accounts and personal business accounts have been frozen for the use of a well-known Bitcoin trading site. No illegal activity was carried out, but just because the word "Bitcoin" was mentioned, my accounts were blocked at the moment. A "Senior Fraud Advisor" then closed my complaint, leaving me no choice but to address the issue to the Financial Ombudsman by appeal.
After a complaining complaint from Snaith, HSBC canceled the freezing order, but Barclays refused to do the same. The owner of 50cycles says he will no longer bankrupt with Barclays as the situation has even made him lose a staff member because of his inability to pay salaries. According to Snaith, UK banks are anti-cryptocurrency and are doing their best to frustrate the nascent industry.
Bitcoin Discrimination
The United Kingdom is not the only place with widespread complaints about discriminatory practices by banks against cryptocurrency companies. In June, Bitcoin brokers in Ireland accused local banks of systematically denying access to banking services. Bitcoin traders have said that the situation forced them to close their offices or move to more friendly locations.
In countries such as India and Iran, their respective central banks have banned local commercial banks from facilitating cryptocurrency transactions as well. Since the end of 2017, governments, as well as financial regulators, have taken severe measures against alleged unfair practices in the flourishing virtual space of currencies.
What do you think of the practice by High Street banks of closing accounts of people involved in cryptocurrency trading when there are no such bans in the UK? Continue the conversation in the comments section below.
Image courtesy of BikeBiz.com.
