Australia's NAB cuts ties with virtual currencies

April 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: Top India Bitcoin operator halts trade after bank warning

Related Stories

China online marketplace Taobao to ban Bitcoins

January 8, 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.

Vietnam says bitcoin transactions are illegal

February 28, 2014

(AP)—Vietnam's communist government said trading in bitcoin and other electronic currencies is illegal, and warned its citizens not to use or invest in them.

Recommended for you

Toyota promises better mileage and ride with Prius hybrid

October 13, 2015

Toyota Motor Corp. released details for its fourth-generation Prius on Tuesday, promising that improvements in the battery, engine, wind resistance and weight mean better mileage for the world's top-selling hybrid car.

Facebook to test mobile app shopping tab

October 12, 2015

Facebook said Monday that it will begin testing a shopping tab for its mobile app as it works to ramp up advertising and online commerce offerings.


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.