Rabobank bans business customers from buying cryptocurrencies

De Rabobank Prohibits Business customers can buy or sell cryptocurrencies through a bank account. This is stated in a letter that the bank sent to customers earlier this month. According to Rabobank, trading in virtual currencies such as Bitcoin involves many risks. The bank also says it has little insight into these types of transactions, which causes problems in monitoring fraud and money laundering.

According to the bank, there are even more risks associated with trading in cryptocurrencies for companies than for individuals. In addition to the danger of money laundering and cybercrime, Rabobank customers could become victims of so-called pump and dump schemes. Customers could also use cryptocurrencies to circumvent sanctions, for example when making payments to and from countries that are on a sanctions list. The bank also refers to previous warnings by the AFM and the Dutch Central Bank regarding cryptocurrencies.

Rabobank doesn't want cryptocurrencies

Rabobank does not want customers to transact with cryptocurrencies, in its own words to protect its customers. This form of patronizing is remarkable, because cryptocurrencies can also be used for bona fide purposes. In this way, the bank hinders the acceptance of cryptocurrencies as an alternative means of payment or as an instrument for parking assets.

In recent years, several large publicly traded companies have already put crypto coins on their balance sheets. Think of Tesla, MicroStrategy, Galaxy Digital and Square, for example. These companies have bought cryptocurrencies for a variety of reasons, but not to launder money or evade sanctions. These companies would not be able to do business with Rabobank.

Rabobank says it welcomes developments in the field of cryptocurrencies, but this is not yet reflected in its policy. Business customers who use cryptocurrencies violate the bank's rules and therefore run the risk of being excluded as customers. Regardless of their motivation to buy crypto coins.

This contribution comes from Geotrendlines

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