Australia's NAB cuts ties with virtual currencies

Apr 10, 2014

One of Australia's biggest banks confirmed Thursday it was distancing itself from digital currencies after reviewing its risk profile.

The National Australia Bank, one of the country's four main banks, has reportedly sent letters to whose primary business is trading in Bitcoins and other crypto-currencies, saying their accounts will be closed on May 2.

The letters state that an internal review concluded that ties with virtual currency providers posed an unacceptable level of risk to the bank's and reputation, Australian Associated Press reported.

A spokesman for the NAB said it was correct to say the bank was distancing itself from computer-generated currencies, which are unregulated.

"National Australia Bank does not bank or trade in unregulated currencies, or have any plans to do so," the spokesman said in a statement to AFP.

"NAB continually reviews its risk profile and the businesses we bank, ensuring NAB's activities are in the best interest of our customers and our shareholders."

Unlike most currencies, Bitcoin is not backed by a government or central bank.

The has suffered a series of blows since February when the Tokyo-based Bitcoin trading exchange MtGox filed for bankruptcy, after admitting it had lost about half a billion dollars of the virtual unit.

Explore further: Social media sackings risk stifling journalistic expression

Related Stories

China online marketplace Taobao to ban Bitcoins

Jan 08, 2014

China's largest online marketplace, Alibaba Group's Taobao, said Wednesday that it would ban the trading of Bitcoin and other virtual currencies from January 14, after a government crackdown on the units.

Recommended for you

ICANN chief stepping down in early 2016

May 21, 2015

The head of the group that oversees all Internet addresses will step down early next year, after a plan to end US oversight of the key nonprofit organization.

How alternative currencies could catch on and cash in

May 21, 2015

Alternatives to cash, like Bitcoin and Uber, may never replace the coins in our pockets or paper bills in our wallets, but they are creating significant social and economic impacts, and with some design adjustments, ...

Spotify introduces video, radio service

May 20, 2015

While saying that it is still a music company at heart, Spotify says it is expanding its lineup to include podcasts, news radio and video streaming.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.