Bulgarian Banks Block Accounts of Digital Currency Exchanges

Yesterday afternoon numerous main banks in Bulgaria terminated accounts held by the Bulgaria’s digital currency exchanges. The banks also are blocking transfers to and from worldwide Bitcoin exchanges. The Bulgaria’s affected exchanges have briefly suspended their offerings. Digital currency exchanges that offer digital currency to fiat transactions very much rely upon conventional fiat banking. However, the nameless nature of digital currency means that it is riskier to transact in, given that transactions are hard to reverse.

This week in Bulgaria main banks determined to remove this danger by force. The quick move to block accounts held by Bulgarian digital currency exchanges was clearly a coordinated decision made by Bulgaria’s banks. The move was unrelated to any specific authorities’ choice or regulation. Collaborating banks look like trying to mitigate danger by not transacting in Bitcoin or different digital currencies.

Bulgaria

In line with a post from the administrator of the Bulgarian Bitcoin forum, the banks closed the accounts of all organizations whose activities are associated with the buy or sale of Bitcoin. Similarly to Fibank, affected organizations cited the United Bulgarian bank as one of the banks blocking accounts.

In a post within the equal thread of the Bitcoin forum, the alleged dealing with director of an affected organization, Neven Dilkov, wrote that although the United Bulgarian bank additionally blocked their accounts, not all banks in Bulgaria are taking this harsh stance:

“I spoke with Societe Generale and Piraeus separately and each banks do not have an issue with organizations operating with digital currencies.”

Crypt exchanges affected by this week’s crackdown consist of Cix.bg, Crypto.bg, and Cryptobank.bg. In step with their site, the latter remains open for buying and selling but is accepting budget just through ePay. Further to Bitcoin, the exchange as has briefly suspended buying and selling in Ether because of overloads at the network due to CryptoKitties. Bulgarians trying to buy Bitcoin for fiat can nevertheless achieve this thru Coinbase and LocalBitcoins.

BTC

One after the other, Bulgaria and Bitcoin lately made headlines due to a central authority raid made back in May. With the latest spike in Bitcoin’s rate, the 200000 Bitcoins seized in can in a chain of raids made by Bulgarian regulation enforcement are actually worth over tree billion dollars.

This sum is a six-fold growth from the time of the raids while the entire seizure was worth just five hundred million dollars. It remains unclear what the Bulgarian authorities is making plans to do with the seized finances.

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