Bitcoin Users In Australia Faced With Frozen Bank Accounts

Despite an overall fall in the value Bitcoin today holds in terms of USD, an investment can still make your rich in the near future. But that might not exactly be true if you live in Australia and all your financial deeds are in Australian bank accounts.

From the National Australia Bank and Commonwealth Bank of Australia to Westpac Banking Corporation, there has been a trend of growing dissatisfaction with regards to account holders who use their credited funds for the sake of purchasing or converting Bitcoins. The bank representatives claim that they have been notified of ‘suspicious activities’ that take place inside and through the account which were caught by the cyber defense networks of the bank.

Here are the reasons why this may be dangerous:

  1. Potential Cyber Attack

Digitized networks are not impossible to break into regardless of how secure they are using modern security mechanisms. Australian banks have been quite stealthy in responding because they are not willing to allow a mass attack on their servers which could not only cost them customer confidence and money but also threaten national security. There are few platforms that seem to go the extra mile to be secure, like the BitConnect lending website.

  1. Decentralized Nature

The banks are concerned about their guarantees of security when they have to face a number of sources trying to flag customer accounts every day. And the problem cannot be resolved by tracing it to the source because there is no known source, which is a problem that sprouts from the fact that Bitcoins are not regulated by any known authority.

Customer Reaction

“People want control of their money” was a statement that was tweeted by Nugget’s News Australia on Twitter on the 28th of December, 2017. And it is true considering how no official statement has been issued by the Australian government according to which people are encouraged not to buy crypto-currencies.

The arbitrary nature of this restrictive stance adopted by the banks of Australia resulted in overall infuriation of the customers. A frozen bank account cannot be used for any credit or debit transaction, and any individual who has his/her job relying on a functional bank account is likely to face a lot of trouble because of this step.

The bigger picture focuses on how the Australian banks are unclear on what they demand. A law-abiding citizen who pays his taxes, follows the compliance policy of his bank, and is very punctual with all his financial matters should essentially not be targeted, and yet this sudden policy has erupted like an awoken volcano.

What’s Next?

The banks cannot refer to crypto-payments as fraudulent ones because they have not been classified as illegal payments. That being said, perhaps what the customers are really looking for is some empathy where instead of directly freezing the account the customer is contacted, informed, and warned about the scene so that the future occurrence of any suspicious activity is not left unattended by the bank.

A Commonwealth Bank Spokesperson stated that the use of these currencies is legitimate as long as it follows the policy of the bank, and it is not known whether this policy will be revised, amended, or left as it is in the upcoming days.

Leave a Reply

Your email address will not be published. Required fields are marked *