Yesterday afternoon several major banks in Bulgaria terminated accounts held by the country’s cryptocurrency exchanges. The banks are also blocking transfers to and from international Bitcoin exchanges. The country’s affected exchanges have temporarily suspended their services.
Crypto exchanges that offer crypto to fiat transactions very much rely on traditional fiat banking. But the anonymous nature of cryptocurrency means that it is riskier to transact in, given that transactions are difficult to reverse.
This week in Bulgaria major banks decided to do away with this risk by force. The swift move to block accounts held by Bulgarian crypto exchanges was evidently a coordinated decision made by Bulgaria’s top banks.
The move was unrelated to any explicit government decision or regulation. Participating banks appear to be trying to mitigate risk by not transacting in Bitcoin or other cryptocurrencies…