[2015-04-19] americanbanker: Bitcoin Companies Pay Steep Fees for Bank Access

[LiteCoinGuy]

Bitcoin Companies Pay Steep Fees for Bank Access

As financial institutions worldwide move to cut off relationships with industries that regulators consider risky, the few banks that serve these businesses are charging hefty fees for basic services.

http://www.americanbanker.com/news/national-regional/pot-bitcoin-companies-pay-steep-fees-for-bank-access-1073710-1.html

[cbeast]

But they give great deals to terrorists and drug lords.

[italianMiner72]

But they give great deals to terrorists and drug lords.

do not forget weapons Lords...

[cbeast]

But they give great deals to terrorists and drug lords.

do not forget weapons Lords...

Actually, that part of their business model is probably legal.

[jjacob]

Bitcoin Companies Pay Steep Fees for Bank Access

As financial institutions worldwide move to cut off relationships with industries that regulators consider risky, the few banks that serve these businesses are charging hefty fees for basic services.

http://www.americanbanker.com/news/national-regional/pot-bitcoin-companies-pay-steep-fees-for-bank-access-1073710-1.html

Aren't the fees which banks can charge regulated?
Banks do provide a public service and the charges which are levied can be questioned.

[fancy_pants]

The crux of the problem is that bank transfers can be reversed and bitcoin transactions cannot.  So, in the context of selling a bitcoin to someone for fiat, the only practical way to make a bank transfer non-reversible (and protect the seller) is to either demand cash deposit with a bank teller or to wait several days (up to 90 days) for the transaction to clear completely through a byzantine banking trust network.  Neither approach is good because cash deposit with a teller costs the bank $10 and "several days" is increasingly being scrutinized as a ham-handed way to bloat the bank's treasury.

Instead of recklessly closing accounts to save on $10 transaction costs, there is something banks can do to stay relevant for a while longer.  Banks could link their transfers to blockchain transactions and mandate that those linked bank transfers non-reversible.

The data is there already and it would be a terrific way for those that currently fund banking to prevent terrorism and create jobs by building out this helpful surveillance toolset.

[unamis76]

There's an advantage for banks to make it deliberately hard for Bitcoin businesses to use them... After all, that's the only way they can attack their biggest competition

[bitbouillion]

There's an advantage for banks to make it deliberately hard for Bitcoin businesses to use them... After all, that's the only way they can attack their biggest competition

Looks like banks don't worry about antitrust lawsuits at all. They think they are invincible.

[TheButterZone]

But they give great deals to terrorists and drug lords.

do not forget weapons Lords...

Actually, that part of their business model is probably legal.

Weapons lording to genocidal and democidal organizations and governments, yes. Selling to sober, law-abiding, mentally sound victims? http://en.wikipedia.org/wiki/Operation_Choke_Point their asses.