Some of the biggest cryptocurrency companies in Ireland have made it known that some of Ireland’s leading financial institutions have denied them access to banking services. This recent development has caused a lot of Bitcoin businesses that are based in Ireland to either go out of business or enter partnerships with other firms outside Ireland. This development has affected cryptocurrency businesses in various ways. Some of the biggest Bitcoin businesses in Ireland that already have accounts with banks have been forced to forfeit their accounts while those that are yet to have accounts have been denied access to getting one.
Although quite a number of Bitcoin businesses that are based in Ireland have been affected by this new development, among those that are worst hit are Bitcove and Eircoin.
How Bitcove is Coping
Bitcove is the winner of the “Best Business Start-up” award and is a Bitcoin business that was established in 2014. As a Bitcoin exchange firm, Bitcove worked with Allied Irish Banks, Bank of Ireland, and Permanent TSB. According to Peter Nagle, Co-founder of Bitcove, the business account of Bitcove was closed because banks are no longer in support of Bitcoin businesses and any business that is associated with cryptocurrency. As a result of this, Bitcove has partnered with another business outside Ireland to ensure its continued relevance.
Peter Nagle went on to say that Bitcove was particularly disappointed in the Bank of Ireland as Bitcove was a participant in a start-up program in which delegates from the Bank of Ireland were a part of the panel.
Eircoin is not Left out of this development
Bitcove is not the only Bitcoin business that has been affected by the move of banks to shut down all cryptocurrency related businesses. Eircoin, a business that is involved in Bitcoin broking was also affected. Eircoin’s co-founder, Dave Fleming has this to say “we are being shuttered due to a negligent and defensive banking system”. Dave also went on to say that Eircoin, as well as other Bitcoin businesses in Ireland had met with the Central Bank of Ireland before going on to set up their businesses, and were told that they could set up Bitcoin businesses as long as they abide by the regulations provided by the law.
What do Banks in Ireland have Against Bitcoin Businesses
In the face of overwhelming accusations by Bitcoin businesses, most commercial banks in Ireland have not said anything in defence. Well, unlike most other banks in Ireland, the Bank of Ireland has responded to accusations that it no longer provides services to Bitcoin businesses. It explained that its clients could continue with cryptocurrency transactions if they were okay with it. AIB group, one of the largest commercial banks in Ireland have explained that the banks in Ireland are ready to offer banking services to cryptocurrency firms if only they are ready to work with anti-money laundering regulations and laws that require them to know their customers‘ identity (KYC). This explanation implies that there is a likelihood that Bitcoin businesses in Ireland are not completely abiding by regulations provided by law, and that might be the reason for this lack of access to banking services.