Irish Banks Refuse Services to Cryptocurrency Firms

News
Wed, 05/13/2020 - 14:28
Alex Dovbnya
Irish cryptocurrency firms are having troubles accessing local banking services due to regulatory issues
Cover image via stock.adobe.com
Contents

Ireland-based cryptocurrency firms are being denied banking services by local banks, according to The Irish Times.     

As a result, they are forced to turn to foreign banking partners despite the country’s positive stance towards blockchain.    

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Irish banks slam their doors 

Bitcoin ATM provider Boinnex is among a slew of affected companies after it was cut off by ‘Big Four’ commercial bank AIB back in October. 

Bryan Tierney, the founder of Boinnex, says that they now have to deal with ‘exorbitant’ fees’ that are charged by foreign banks:  

We’ve been forced to get a banking partner abroad. A lot of companies in the space are in a similar situation. Some of these foreign banks charge exorbitant fees as they know they’re the only show in town.    

Bitcove, another Irish crypto ATM company, has so far had no luck finding a local banking partner either.   

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Blame politics 

The crux of the problem appears to be regulatory uncertainty around the novel asset class in Ireland.

The fifth anti-money laundering directive (5MLD) didn’t come into force in early January. 

Ireland's ruling Fine Gael party has so far failed to form a new government, which led to the delay.      

AIB claims that it didn’t impose a blanket ban on all cryptocurrency industry players but it can prevent certain companies from opening an account if they don’t comply with AML regulations

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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