National Australia Bank Closes Bitcoin Accounts

The National Australia Bank is severing ties to digital currencies, saying they are too risky.

The decision comes after recent moves by the Bank of Ireland and the Bank of Montreal to distance themselves from customers who trade in digital currencies.

NAB has sent letters to business customers who primarily trade in bitcoin and similar cryptocurrencies saying their accounts would be closed on 2 May.

The letters say an internal review concluded that ties with digital currency providers pose an unacceptable level of risk to NAB's business and reputation.

Confirming the move, a spokesman said: “NAB continually reviews its risk profile and the businesses we bank, ensuring NAB's activities are in the best interest of our customers and our shareholders.”

Meannwhile, National Australia Bank has decided to steer clear of digital currencies, informing business customers who trade in Bitcoin and similar crypto-currencies that their accounts will be closed on May 2.

One company affected by NAB’s decision is Australia’s largest Bitcoin trader, CoinJar, which said the decision will affect many local companies.

CoinJar co-founder Asher Tan said that NAB had at least had the courtesy to provide plenty of notice.

“We have done this before; we transitioned from another banking partner in 2013 in a much shorter timeframe," Mr Tan said.

According to NAB, the decision was taken after a thorough internal review was conducted on the risks involved with crypto-currencies.