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South African Nedbank Not Planning To Close Crypto Exchange Accounts

Jyoti Singh by Jyoti Singh - 11:43 PM Jan 25, 2020
South African Nedbank Not Planning To Close Crypto Exchange Accounts

A report published in SACrypto stated that South African tech news site, ITWeb, published a false article regarding Nedbank. According to ITWeb report, Nedbank was planning to follow the footstep of FNB (First National Bank) by closing the crypto-related accounts of its customers. The ITWeb published the information after taking Richard de Sousa’s, the CEO of AltCoinTrader, comment on Nedbank.

de Sousa's Clarification

Later, de Sousa clarified that his statements in the ITWeb article was taken out of context and hyped unnecessarily as he was talking about Nedbank not accepting any more crypto accounts and not about closing existing ones.  de Sousa further said, “We have had an ongoing relationship with Nedbank for a number of years, one of our primary banking partners, and to the best of my knowledge, the bank has not even said a single thing with regards to this news.”

ITWeb Claims To Have Inside Information

The report by a media publication further stated that according to ITWeb, Nedbank officials have contacted many of the media outlets in South Africa and told them that they were planning an internal process for dealing with its crypto business client. According to a report, Farzam Ehsani, CEO at VALR and a former Blockchain Lead at RMB (Rand Merchant Bank), had stated that his company did not get any prior indications from Nedbank regarding the closing of crypto-accounts, therefore, he did not believe the news. Ehsani also expected that FNB would reverse its 2019 decision of closing crypto-accounts.

SA Government To Launch New Regulations For Cryptocurrency

At present, many of the banks in South Africa were planning to withdraw their support for crypto-exchange platforms, and therefore, the industry stakeholders have asked the government to implement a clear-cut cryptocurrency regulation in the country. According to a report, earlier, in December 2019, the South African Government did plan to set new laws for cryptocurrency regulation. The law focused on blocking the use of cryptocurrency in illegal money transfer.

About The Author
Jyoti Singh

Jyoti SinghGraduated from GGSIPU and did PG Diploma in English Journalism from IIMC. Last worked at Business News and Information Services Ltd. for more than one and a half years as a sub-editor.

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