Bank Frozes Cryptopia’s NZDT Account

Bank Frozes Cryptopia’s NZDT Account

In the middle of the crypto bloodbath, yet another exchange is experiencing problems with banks. New Zealand cryptocurrency trading platform Cryptopia reports that its dollar-tethered accounts have been frozen. The announcement says that Cryptopia’s bank is closing their accounts on February 9 and currently NZDT deposits are put on hold.

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In the middle of the crypto bloodbath, yet another exchange is experiencing problems with banks. New Zealand cryptocurrency trading platform Cryptopia reports that its dollar-tethered accounts have been frozen. The announcement says that Cryptopia’s bank is closing their accounts on February 9 and currently NZDT deposits are put on hold.

For these reasons, it is advisable Cryptopia users do not deposit funds into the exchange’s NZDT account. The bank which name wasn’t disclosed however extended the deadline until March 31. According to recent announcements, the Cryptopia team is working on the problem and will notify its customers if something changes.

The exchange itself offers more than 400 cryptocurrencies for public trade. Its clients can deposit and withdraw funds, too. Investors can easily convert New Zealand dollars into various cryptocurrencies and trade them by sending fiat to the NZDT account.

Since the account is currently closed, Cryptopia offers premium rate to traders who have their NZDT funds frozen. They can exchange their NZDT for bitcoin and litecoin at very competitive prices. The exchange is uncertain when it would be able to renew its services at full because at the moment it is looking for financial institutions willing to cooperate.

According to Richard MacManus, a trader in Cryptopia, other cryptocurrency exchanges in New Zealand are experiencing the same issues regarding banks. Things are quite the opposite in Australia however. Banks over there are not even considering banning their clients from purchasing crypto coins. Karen Scott-Howman, New Zealand Banker’s Association CEO, emphasizes that banks take these actions in order to prevent money laundering and crime funding.

New Zealand’s laws require banks to know who is sending money to who. Something which is not favored by cryptocurrency enthusiasts.

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