FirstRand Bank of South Africa notifies Cryptocurrency trading platforms of eminent withdraw of its banking service.
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In a letter, FirstRand Bank said it will stop offering its services to any cryptocurrency exchange like Luno, ICEX and VALR. It will shut down accounts belonging to these exchanges and any other cryptocurrency related platforms.
An excerpt from the later reads;
“First Rand Bank has been considering its risk appetite in respect of virtual currencies and virtual currency exchanges for some time.
Within this context the bank has taken the decision to discontinue the provision of banking services to virtual currency exchanges and/or entities dealing/trading in virtual currency.”
There is no clear regulatory framework for cryptocurrency use in most African countries yet. This has been somehow a set back towards the growth of Crypto Fintech companies in the continent.
Its not a news in the western world for cryptocurrency related companies account to be banned. But its spread into the African continent might lead to halt on individuals accounts.