Barclays and HSBC have blocked three accounts of British retailer elektronikov for the fact that he traded Bitcoin for cash through the popular P2P trading platform. The incident occurred five months after Coinbase opened a Bank account at Barclays.
Scott Snayt, the retailer elektronikov from Leicestershire, UK, has two personal and one business account in HSBC and Barclays. According to entrepreneurs, banks have not provided any explanation in respect of his unilateral decisions, despite the fact that transactions with cryptocurrency held by Saitom, was “completely transparent and legitimate.”
Business Snita associated with the blocked account banks, company 50cycles, which works closely with the manufacturer electrobike Toba. The company has previously released her own bike, able to mine cryptocurrency.
Snayt claims to be the victim of financial discrimination, which seriously hurt his business because he was unable to pay employees and suppliers:
“The current situation is a total nightmare, the damage is irreparable. One of my employees quit because they have just had a child, and he could not afford to not work pure enthusiasm, and I understand it![…] I never will cooperate with Barclays. I am a professional business owner, using new financial technologies, and it seems that the banks cannot cope with the new habits of their customers. We are punished. Banks are deliberately creating obstacles. They are against digital currencies and demonstrate a new form of financial discrimination. Their message makes it clear — your Bank account does not belong to you”
Immediately after public disclosure of the incident with Snatam, HSBC has restored his account, but Barclays continues to refuse to do it. A spokesperson for the Bank commented on the situation:
“Barclays meets its legal and regulatory obligations.”
Andrew Hagger, founder of Moneycomms.co.uk, believes that banks are increasingly concerned about potential money laundering with the use of crypto-currencies:
“It may be wise to speak to your Bank before starting to trade cryptocurrency to learn, what is their position and whether they have any specific rules or limitations on transactions […] may Also be helpful to keep your money in cryptocurrencies in a completely separate Bank, so if the account is frozen for any reason, this does not affect your daily Finance.”