19 August 2017
Find out more

NAB turns its back on Bitcoin; cites reputational risks

10 April 2014  |  7154 views  |  0 Sydney Opera House 2

National Australia Bank is to close down accounts held by people trading in bitcoin due to the "unacceptable level of risk" posed to its business and reputation.

The bank has joined others, such as Bank of Ireland and BMO, in taking a hardline policy on bitcoin-related accounts.

NAB has informed affected customers of its change of heart in a letter, saying that it has a responsibility and commitment to continually review its risk profile.

"NAB has recently conducted a review of businesses that trade in digital currencies and has determined that digital currency providers pose an unacceptable level of risk, both to our business and reputation," says the letter, sent to AusBitcoins and seen by Coindesk. "As a result of this review, NAB has decided to stop providing banking services to you and will close your accounts, effective 2nd May 2014."

The move comes just a month after Japanese bank Mizuho found itself caught up in the fall-out from the collapse of MT Gox. As the banker to the defunct bitcoin exchange, Mizuho has been named in two of the numerous lawsuits being brought against the bankrupt company in the US and Canada.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Wall Street industry group swallows Bitcoin red pill

Wall Street industry group swallows Bitcoin red pill

31 March 2014  |  15985 views  |  0 comments | 13 tweets | 5 linkedin
Mizuho faces legal action over MT Gox collapse

Mizuho faces legal action over MT Gox collapse

17 March 2014  |  4483 views  |  0 comments | 4 tweets | 8 linkedin
Bitcoin not a currency but has tech potential - Goldman Sachs

Bitcoin not a currency but has tech potential - Goldman Sachs

13 March 2014  |  9610 views  |  7 comments | 10 tweets | 5 linkedin
Bank of Ireland rejects bitcoin ATM firm's account request

Bank of Ireland rejects bitcoin ATM firm's account request

11 March 2014  |  4707 views  |  0 comments | 7 tweets | 7 linkedin
Forget bitcoin, let's ban hard cash urges US congressman

Forget bitcoin, let's ban hard cash urges US congressman

07 March 2014  |  7299 views  |  6 comments | 16 tweets | 15 linkedin
BMO closes the door on bitcoin businesses

BMO closes the door on bitcoin businesses

19 February 2014  |  5465 views  |  0 comments | 7 tweets | 6 linkedin
Standard Bank tests current account-linked bitcoin wallet

Standard Bank tests current account-linked bitcoin wallet

11 February 2014  |  15972 views  |  2 comments | 14 tweets | 13 linkedin
Wells Fargo and JPMorgan take contrasting stance on bitcoin

Wells Fargo and JPMorgan take contrasting stance on bitcoin

24 January 2014  |  14092 views  |  2 comments | 11 tweets | 14 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
download the paper nowvisit www.worldpaymentsreport.comvisit www.dorsum.eu

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
7944 views comments | 22 tweets | 23 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
7383 views comments | 19 tweets | 23 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
6193 views comments | 10 tweets | 7 linkedin
hands typing furiouslyWhy Blockchain Might Not Be The Future For...
6099 views 1 | 5 tweets | 3 linkedin
Apple sidelined as Beijing transit system launches payments appApple sidelined as Beijing transit system...
5941 views comments | 11 tweets | 9 linkedin

Featured job

Competitive
New York, NY - USA (some flexibility on location)

Find your next job