Nowadays, Cryptocurrency is used by many people. Since it started in 2009, its popularity is rising day by day—many people are interested in investing in this currency than any other type of investment. Cryptocurrency is a digital currency that does not exist in the physical world. And this currency is used for buying and selling assets and any other thing the holder wants.
Cryptocurrency is a type of money that acts as a medium for exchange, and currency ownership is stored in a ledger, which is the form of a digital database that is well cryptic to make secured one. This currency is of different forms, changing from platform to platform or website to website.
These different types of currencies have different price levels. Some of the cryptocurrencies are
- Binance coin,
- Bitcoin cash,
- Litecoin, etc
These have different exchange values, market capitals, etc. used in different places; in 1600, the number of these currencies available in the online market. Different countries use different types of currencies or say different types of cryptocurrencies available in one country.
Cryptocurrency is volatile
Cryptocurrency behavior cannot be predicted properly. The currency prices may hit the sky at some point and also hit the ground at some point. This currency is well cryptic data and needs some conditions to fulfill during tractions of such currency. Contracts play as a medium between the two parties who wanted to transfer the currency.
These contracts consist of some conditions for successful transactions, making it a secure type. There are different advantages to this, making many people attracted to it, such as easy transactions without any medium such as brokers or third parties. A decentralized type of operation where no one holds control of transactions makes it more confidential. International transactions become simple using this currency as it is adaptable, i.e., can easily convert from one form to another
Smartphones are the most common electronic devices in everyone’s life with the internet in it. One can easily access their Cryptocurrency with a basic data connection. All know the internet is used by most people globally, which proves that Cryptocurrency is easy to access. Assets can be transferred easily with the help of Cryptocurrency.
Steps involving creating an account for Cryptocurrency and using it are easy and can learn through the internet. Many platforms and websites are available for this currency access. Many trade networks are available in the internet market for buying or selling crypto money. Many websites are available to convert flat currency such as the euro, dollar to the required Cryptocurrency.
Cryptocurrency is getting popular these days, so regulations are needed to direct in the right way forward. For the development of the Cryptocurrency industry, close interaction is needed between traditional finance and regulations. Due to the pandemic Crisis, users of crypto assets are increased to save their savings and interest in Cryptocurrency. Many people prefer to invest in Cryptocurrency than normal investments due to the benefits it has.
Why banks blocking Cryptocurrency
With the rise of Cryptocurrency popularity, the attention is increased toward it from the world. However, due to the improper knowledge in this field, many people may block their bank transactions if they are involved in crypto, which makes them hesitate to invest in it. Reasons for the blocking of Cryptocurrency is mainly due to restrictions either based on the regulator or the acquirer.
Many states issued conditions and rules on Cryptocurrency operations converting local currency to any other currencies. The many States even issued a ban on purchasing crypto and impose limitations to control this cryptic money flow, as the state government fears of local money to be converted into crypto or foreign currency
Many people fear their bank cards by which they buy or sell this currency may be blocked by the bank at some point even though crypto is legal at such places. Some banks don’t want to be involved with Bitcoins or other types of virtual currency transactions due to its risk. Crypto crimes and not anger customers or other legal concerns are a few of the challenges. Such a bank only records the transaction regarding Cryptocurrency and doesn’t go through it.
Reason for banks blocking Cryptocurrency
The reason for banks blocking Cryptocurrency transactions may vary from banks to banks and jurisdiction.
- Cryptocurrency transactions are illegal for some banks as exchanges of this currency are not legal in their states, and doing it is against the law.
- Some banks think that rejection is better and simpler than doing deep research regarding such transactions as the bank needs to go through it and deal with unregulated intermediaries.
- In some states, the government is even wanted to ban people who use Cryptocurrency for paying for goods and services so they can make legitimate purchasing in the future.
- Different approaches are being used to control this currency flow. As mentioned above, there won’t be any record on the Cryptocurrency like how they are transacted. One cannot know whether such a transaction is for legal use or some crime—registration needed in some countries with their respective government for a person to establish a crypto-based business.
- The regulator is one category that restricts the flow of the photo of currency so that it won’t affect the country’s economy.
- On the other hand, the acquirer imposes limitations on transactions to prevent operations that challenge lawful operations. The acquirer is another category that doesn’t consider the country’s economy only deals with things regarding the benefits of businesses, which somewhat different from the regulator, which thinks about the big picture.
- The acquirer doesn’t follow a 3D secure card transaction system, which leads to an increase in the cost of service and makes it so that the Cryptocurrency seller takes the transaction’s responsibility until completely transferred.
- Anonymous and prepaid card transactions can be restricted using acquirers by the banks and restrict some purchases in the entire country. The United Kingdom is an example of it. This method helps to country’s economy by eliminating money laundering, illegal purchase, etc
Banks play a major role in the centralized local financial system. Flat money, such as the euro, dollar, etc. is the currency that is the main currency needed to buy anything in the state or country. Even to buy Cryptocurrency need flat money, and this involves bank cards or banks which control the process. Even though after the purchases of crypto, what a buyer does with this money is depends on himself. Still, the basic requirement of crypto trading or investment needs to have Cryptocurrency converted from local currencies. Many countries are crypto-friendly best example is South Korea, but there are who against this crypto too.
The limitation, such as the type of bank dealing with it or its local authority, often brings its disinterest with people. The main reason for the blocking of accounts while purchasing Cryptocurrency is to control the crypto crime, which may occur in the future as this crypto operation involves decentralized operations. Despite this fact, many people are still interested in investing in crypto. But the development of this industry needs the support of regulators and the traditional financial system. Many wish for having their country crypto-friendly to some point. So that crypto used to feel at ease while investing in such industries.