Last month saw Slovak banks closing all individual and company accounts associated with cryptocurrencies, as reported by Paralelni Polis cryptocurrency center.
Similar mass account closures were also taking place in Czech Republic and Bulagaria. There are still no comments on the matter from the banks themselves.
According to a source who wished to stay anonymous, the banks act on the instructions and under the authority of local regulators and the National Bank of Slovakia. This was preceded by the latter institution addressing confidential letters containing the request to discontinue servicing the accounts belonging to companies and individuals involved in cryptocurrency dealings to all the banks in the country. The National Bank also urged all the country’s financial institutions to keep this information secret. Even bank officials responsible for servicing crypto clients were denied access to more detailed information on the matter, as revealed by the same anonymous source.
The National Bank of Slovakia had reportedly ruled to prevent cryptocurrency companies from opening any new or additional accounts as well.
There is a hypothesis that this service termination in Slovakia, Bulgaria and Czech Republic were subsequent to a coordinated governmental plan, as the press in all three countries got hold on the information on the incidents simultaneously.
The banks have unilaterally terminated the contracts with their clients under the pretext of “bank management’s business decision”, while making it clear to legal entities and individuals that this decision is final and not subject to review.
It is on the record that Slovak Sporitelna and Fio Bank are among the banks which ceased providing services to their cryptocurrency clients. It is also known that OTP Banka, Prima Banka, Privatbanka and Oberbank have been denying account opening requests submitted by organizations involved in cryptocurrency industry since the last month.
The described actions are, in fact, being performed in violation of freedom of entrepreneurship and are contrary to antimonopoly policy of the state. Even AML/KYC-obedient companies fell victims to these haphazard measures.
Much similar processes are taking place in Russian banking as well. As reported earlier, recently adopted amendments to the Civil Code of the Russian Federation authorized Russian banks to freeze deposits originating from cryptocurrency sales.