Leading South African Bank sends account resolutions to crypto-arbitrage dealer-Finance
Leading South African Bank sends account resolutions to crypto-arbitrage dealer-Finance
One of the largest banks in South Africa, the standard bank, has reportedly sent account resolution to customers who offer automated arbitrum services for cryptocurrencies.
criteria of the bank questioned
This move, according to a mybroad band test report, has sent shock waves through the cryptocurrency industry. The sending of the communications also raised questions about the criteria that the Standard Bank uses when deciding on the termination of accounts.
Carel de Villiers, co-founder of the Arbitrage trade company Shiftly, is, for example, a person who questions the Formula of Standard Bank. De Villiers admits that Shiftly is not a customer of the bank, it considers it strange that the standard bank - which once attempted its company to open an account - maintains a business relationship with its competitors.
The report also quotes an unnamed arbitrage dealer who also claims that his account is simply terminated because of the company's arbitrage business model.
In the meantime, the claims of de Villiers and the nameless dealer by Sean Sanders, the founder of the crypto investment platform Revix, seem to be confirmed. The report quotes Sanders, who admits that Revix-which he says is not an arbitrage dealer-had a better assets with the bank, but only after going through several grueling meetings. However, Sanders complains of South Africa's lack of reasonable regulation and how it contributes to an astronomically high risk of banking.Standard bank that keeps regulations
A spokesman for the Standard Bank defends the termination and insists that the measures of the bank are not discriminatory, but aim to ensure that all customers comply with the regulations.
"The Standard Bank is committed to dealing with its customers fairly and is constantly striving to find an appropriate balance between maintaining customer relationships and compliance with legal regulations," a spokesman for the bank is cited.
The spokesman adds that the bank has established risk management principles, on the basis of which all potential and existing customers are continuously assessed and evaluated. In addition, the bank also refers to the position paper of the South African Reserve Bank and the Intergovernental Fintech Working Group to Krypto-Assets as another possible reason for the bank's step.
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