Volcano Energy Secures $1 Billion for Solar and Wind-Powered Bitcoin Mine in El Salvador

Volcano Energy Secures $1 Billion for Solar and Wind-Powered Bitcoin Mine in El Salvador

Time Stamp: June 9, 2023 3:22 AM
Source Node: 2126401

Major banks in New Zealand are standing firm on their strict controls and, in some cases, bans on cryptocurrency users and traders. This approach has drawn criticism from Easy Crypto, a local crypto firm, accusing the banks of bullying behavior for refusing transactions and denying bank accounts to businesses and consumers involved in digital currencies. The country’s top five banks justify their caution by citing international and domestic risk warnings from regulators, including the Financial Markets Authority. Instances of large-scale crypto scams, such as the collapse of the US-based trading platform FTX, have further fueled their concerns.

Bank Policies Reflecting Customer Safety

New Zealand banks have implemented varying policies regarding cryptocurrency transactions, with Kiwibank and ASB Bank adopting a case-by-case approach. ASB Bank emphasized their commitment to customer safety in a complex regulatory environment, mentioning compliance with anti-money laundering, sanctions, and counter-terrorism financing laws. Westpac New Zealand, on the other hand, takes a highly risk-averse stance, refraining from providing routine banking services to participants in the digital currency exchange industry.

ANZ’s Approach and BNZ’s Risk Classification

ANZ Bank shares Westpac’s cautious stance but permits personal customers to engage in some cryptocurrency transactions, as long as there are no commercial interests involved. BNZ, guided by regulatory advice, acknowledges the growing traction of cryptocurrencies and monitors industry developments. While the bank does not outright prohibit dealing with cryptocurrency-related businesses, it categorizes cryptocurrencies as high risk, setting a risk threshold for onboarding customers operating in this sector.

Kiwibank’s Case-by-Case Assessment

Kiwibank, a New Zealand-owned institution, takes a more open position compared to other major banks. The bank assesses potential customers on a case-by-case basis, requiring evidence of compliance with anti-money laundering and counter-terrorism finance obligations as a minimum requirement.

Ensuring Compliance and Monitoring

New Zealand banks are closely adhering to regulatory guidance while recognizing the rising popularity of cryptocurrencies. They acknowledge the risks associated with the industry and adopt measures to safeguard customers and maintain compliance with anti-money laundering and counter-terrorism finance regulations.

Legal Tender Distinction

Although cryptocurrencies are widely accepted in New Zealand, it is important to note that they are not recognized as legal tender. Unlike traditional fiat currencies issued by central banks, cryptocurrencies do not possess the status of official payment methods. However, this distinction does not impede their use as a medium of exchange or investment instrument within the country.

Increasing Popularity of Cryptocurrency Investments

The 2022 survey conducted by the New Zealand FMA sheds light on the growing popularity of cryptocurrency investments among the nation’s population. Approximately 10% of New Zealanders have chosen to allocate their investment portfolios to cryptocurrencies, indicating a significant level of participation and trust in these digital assets. This trend reflects the increasing recognition of cryptocurrencies as an alternative asset class with potential for long-term growth.

Final Thoughts

As the cryptocurrency landscape evolves, New Zealand’s major banks remain cautious in their approach to mitigate risks and protect their customers. Compliance with complex regulatory requirements, concerns over scams, and international risk warnings contribute to the banks’ careful handling of cryptocurrency-related transactions. The evolving nature of the industry and regulatory developments will continue to shape their policies and approaches to ensure a secure and compliant banking environment.

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