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Author Topic: Have Banks conspired to Kill Bitcoin Startups?  (Read 2533 times)
Payment21
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February 14, 2017, 06:50:45 PM
 #1

This article claims that over 36 bitcoin exchanges have closed shop around the world, since October 2015, due to discontinuation of banking services to them.

Is it that commercial banks have conspired to make it difficult for bitcoin startups or they are just trying to abide by the present laws and regulations?

http://www.forbes.com/sites/rogeraitken/2017/02/12/bitcoin-or-bust-taking-british-banking-out-of-exchanges/#1e942876588e
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February 14, 2017, 06:55:56 PM
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its more about these "exchanges" not declaring they are a business and not having a business bank account. because then they are required to show regulatory approval if they declare the business as a money business.. so most of the 'startups' try running large multidollar businesses using 'personal accounts'

this is not about banks. but fiat regulations. which starts at the government end.

if you want to touch fiat then expect to follow fiat rules.

now you know why bitcoin was invented. if you only hand bitcoin and not touch fiat your not in the jurisdiction of fiat rules.
double edge sword.

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February 14, 2017, 07:01:41 PM
 #3

Banking regulations were not similar to our bitcoin to support huge volume transactions with ease. When huge volume transaction is made in terms of fiat for the bitcoin trading need they are all supposed to follow certain stepped regulations. Abiding this leads to enquiry to the receiver and the sender. In such way lot gets affected.



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CyberKuro
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February 14, 2017, 07:22:26 PM
 #4

Many reasons from banks regulations that could affected exchanges
“I regret to inform you that starting from 1st February, British Pound deposits and withdrawals are no longer supported by Cryptopay due to updated bank policies.”
What kind of policies? We need more information about it.
“Bridging the gap between the conventional banking system and bitcoin is a challenging and expensive task. We have had many issues dealing with the conventional banking system; missing transfers, crippling technical issues, accounts frozen without warning, and even accounts closed without warning.”
In those cases may seems that, conventional bank deliberately restrict exchanges transactions, even though government had stated it as legal digital currency/commodity.
"Of course bitcoin is perfectly legal in the UK although unregulated, but the hub of the matter centres on the banks’ attitude to the cryptocurrency in this country and that they “won't play nice”.
We can't expect more from them and government have to give legitimacy for bitcoin and exchanges, unless they consider the high price and the rising price as a threat for fiat money and banking system which bitcoin has get popularity among citizens.

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February 14, 2017, 07:29:50 PM
 #5

Many reasons from banks regulations that could affected exchanges
“I regret to inform you that starting from 1st February, British Pound deposits and withdrawals are no longer supported by Cryptopay due to updated bank policies.”
What kind of policies? We need more information about it.
“Bridging the gap between the conventional banking system and bitcoin is a challenging and expensive task. We have had many issues dealing with the conventional banking system; missing transfers, crippling technical issues, accounts frozen without warning, and even accounts closed without warning.”
In those cases may seems that, conventional bank deliberately restrict exchanges transactions, even though government had stated it as legal digital currency/commodity.
"Of course bitcoin is perfectly legal in the UK although unregulated, but the hub of the matter centres on the banks’ attitude to the cryptocurrency in this country and that they “won't play nice”.
We can't expect more from them and government have to give legitimacy for bitcoin and exchanges, unless they consider the high price and the rising price as a threat for fiat money and banking system which bitcoin has get popularity among citizens.

having spoke to many banks and businesses and also from my own experiences helping businesses in the past. the problem is not "bitcoin" its startups not understanding the FIAT rules.
also a few cases are where chargeback scammers try to get their wire transfers reversed by pretending they are victims of scams.

this is not a 'banker attack on bitcoin' but a regulation and bank rules enforcement on fiat

in short if you want to run a business that accepts fiat. (for any purpose) know the terms and conditions of the account you are using (dont use personal account for business transactions)

hand over a business plan to the bank explaining how you will mitigate the 'chargeback scammer' risk.
hand over a business plan to the bank explaining how your 'funding' is not linked to crime
hand over a business plan to the bank explaining how you will audit your funding and identify possible threats

I DO NOT TRADE OR ACT AS ESCROW ON THIS FORUM EVER.
Don't take any information given on this forum on face value. Please do your own due diligence & respect what is written here as both opinion & information gleaned from experience. If you wish to seek legal FACTUAL advice, then seek the guidance of a LEGAL specialist.
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February 14, 2017, 07:36:16 PM
 #6

Startups have a high rate of failure (9 out of 10 fail according to some). This has nothing to do with Bitcoin specifically. Running a successful business isn't easy and many who try will fail.

http://fortune.com/2014/09/25/why-startups-fail-according-to-their-founders/

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February 14, 2017, 07:46:50 PM
 #7

Sure banks have a huge power, no doubt about that.

And I do think they're keeping an eye on BTC and the blockchain technology.
But to think they could sabotage btc start up? Nah...
Not because of ethics, just because... They don't give a damn. When you're a god you're not going to kill every mouse who wants to get bigger.

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February 14, 2017, 09:46:59 PM
 #8

I think that ultimately we are going to see alot of business failures in the bitcoin environment, especially in the early days when banks and society are still adjusting to the new reality.
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February 14, 2017, 10:02:25 PM
 #9


now you know why bitcoin was invented
that was satoshi main motivation, to punish bailout for banks
he succeed Smiley
banks will fade in next 100 years

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February 14, 2017, 11:19:28 PM
 #10

You really need the help and corporation of the bank if you are planning to start a bitcoin exchange and if you are not able to start a current account with a bank then your business model is doomed unless you find another alternative.It is not about conspiring and stuff rather ignorance about what bitcoin is all about.

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February 15, 2017, 12:22:57 AM
 #11

I don't think banks care at all to if bitcoin startups will survive, they will just be involved in providing loans to them and such so they're going to hope to be repaid with interest. Though I do believe that current government regulations cause bitcoin startups to have problems as it costs tons of money to adhere to regulations and follow all of them fully.

Plus not a lot of customers who use bitcoin for anonymity are going to want to follow and adhere to KYC laws which are usually key to a companies survival.

Startups have a high rate of failure (9 out of 10 fail according to some). This has nothing to do with Bitcoin specifically. Running a successful business isn't easy and many who try will fail.

http://fortune.com/2014/09/25/why-startups-fail-according-to-their-founders/

This too, it's not like all of these startups are going to work out and MOST don't anyway so you have to take it with a grain of salt with many bitcoin startups failing rather quickly.

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February 15, 2017, 12:36:26 AM
 #12

Whatever banks feel about Bitcoin, they feel an awful lot more about the regulations they have to abide by. For a piddling amount of business they get an awful lot more head aches by being involved with BTC because they can't be sure where the money's coming from. Even if they loved it, they'd probably still say no for the sake of a quiet life.

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February 15, 2017, 12:47:51 AM
 #13

I think the opportunity is definitely there. BANK user is now diminishing as they move and start using bitcoin.
I am assuming that the BANK will suffer substantial losses. they can move for their clients.

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February 15, 2017, 01:15:45 AM
 #14

I think the opportunity is definitely there. BANK user is now diminishing as they move and start using bitcoin.
I am assuming that the BANK will suffer substantial losses. they can move for their clients.

Yeah. the only choice for the banks so that they will not been overpower by bitcoin is to adapt bitcoin itself in their banking system, in that way they will have additional profit and no further losses. The only thing they must consider is the government to accept bitcoin.It is better than making conspiracy against bitcoin
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February 15, 2017, 03:20:15 AM
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The problem was coming from the internal element. I think the chinese exchange's case already give a clear answer for its problem. At the bank was fear with bitcoin. They try to push the startups. and it makes the pessimism trend to continue his startups.

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February 15, 2017, 05:43:49 AM
 #16

The thing is, bank will never admit to this. They will sit behind closed doors and find excuses for their actions to hide the real reasons that they are doing this. Just become a victim of a phishing scam and get your online banking credentials stolen and your accounts wiped, and you will see how these bankers operate. < You will be a victim for a second time >

Banks are quick to sign you up for loans and credit, but you seldom read the detail hidden in their contracts and when the shit hits the fan, you have signed away your rights. ^grrrrrrr^

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February 15, 2017, 10:59:52 AM
 #17

Conspired? No. These exchanges are considered to be illegal money processors. All of them will lose their banking privileges in time if they don't get the proper permits and licenses. The best thing that can happen for the owners of these kinds of exchanges is to be merged with a bigger exchange or do an exit scam.

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February 15, 2017, 11:04:45 AM
 #18

Banking regulations were not similar to our bitcoin to support huge volume transactions with ease. When huge volume transaction is made in terms of fiat for the bitcoin trading need they are all supposed to follow certain stepped regulations. Abiding this leads to enquiry to the receiver and the sender. In such way lot gets affected.
ireally think so dude.Banks and bitcoins are never been the same and can never cross path in our money world and banks cant stop bitcoins
]

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February 15, 2017, 11:07:41 AM
 #19

We dont knows for sure, but I am sure the banks can't kill bitcoin
bitcoin is a big community and many of the people using of bitcoin and will be the great future of payments online.

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February 15, 2017, 11:08:12 AM
 #20

This article claims that over 36 bitcoin exchanges have closed shop around the world, since October 2015, due to discontinuation of banking services to them.

Is it that commercial banks have conspired to make it difficult for bitcoin startups or they are just trying to abide by the present laws and regulations?

http://www.forbes.com/sites/rogeraitken/2017/02/12/bitcoin-or-bust-taking-british-banking-out-of-exchanges/#1e942876588e

Given the fact that bitcoin is legal in UK the banks has now refused to offer services to exchanges hampering bitcoin uses in UK limited to few number of citizens. It is now reported that bitcoin can no longer be useful to the masses in UK when they can no longer convert their bitcoins to fiat. The reason probably that led to this is the banks are losing profit due to increasing number of people placing their savings on bitcoin rather than on banks. The banks probably feels the pressure and threat brought by bitcoins thus to stop the competition it is the best choice for them to discontinue banking services to bitcoin exchanges.

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