A major inconvenience

In recent days, you may have heard about crypto-currency companies having their bank accounts shut down. Is this a worrying trend?

In simple English, crypto-currency companies are the link between the real world and the crypto world. The genesis of all transactions in the crypto world are the digital currencies such as Bitcoin, Ethereum. These crypto-currency companies are providing the vital connection by selling Bitcoin or Ethereum for your money (eg Singapore dollar). By shutting down their bank accounts, it makes it impossible for you to get started to purchase Bitcoin or Ethereum and conversely, it makes it impossible to convert Bitcoin or Ethereum back into local currency.

Cited in the article, amongst others, CoinHako is a locally based exchange that has been hit by a series of bank account closures. This is a major bugbear to the many of those wishing to get onto the crypto world since new accounts have to be set up over and over again with the necessary KYC checks done.

The ironic thing is that all this while, there has been a big push towards cashless payment solutions. Blockchain on a distributed ledger technology no doubt is one of the front runners as it is the most straightforward and transparent way to implement it.

Notwithstanding the irony of the situation, as more regulators jump on the band wagon to disallow their residents in their jurisdiction to access to such exchanges, the only way to get your hands on Bitcoin or Ethereum will be the hard way – mine them.

Source: https://www.bloomberg.com/news/articles/2017-09-26/singapore-cryptocurrency-firms-facing-bank-account-closures

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