CoinJar, a leading company offering tools to buy and sell Bitcoins, had an account with the Commonwealth Bank, Australia’s largest bank; now, the latter has decided to close accounts belonging to the latter. “The latest decision on the part of the Commonwealth Bank of Australia will definitely mar the progress of the Bitcoin payment processing company,” say several experts.
The Australian Bitcoin payment processor CoinJar posted in its blog that Commonwealth Bank was the first stop for its newly minted startup. The decision is surprising as the writer of the post says that as the company had a branch near to the bank’s office and all co-founders had good personal experiences with it, they all started working together.
The blogger further says that even the bank’s security was in-line with CoinJar’s and the branch service was great. However, he added that when things were moving smoothly, after two weeks, the first blip happened when one of its payments to a foreign Bitcoin exchange was returned which was surprising as the company had made over 10 transfers earlier to the same exchange’s bank account without any hassle.
The Commonwealth Bank which posted the biggest ever profit by an Australian banking institution, seems to have blocked CoinJar’s account, states the blogger. He writes that his organization came to know about this when they contacted the bank branch where they were told the issue had to be settled by the Security team.
They were also told that they may have to close and re-open their bank account with the Commonwealth Bank of Australia. The blogger explains that the CoinJar has even been blamed for dodgy transactions. The founder of the company Asher Tan admits that CoinJar bears the cost of dodgy transactions.
Asher Tan also says that it is unexplainable why the bank stopped processing automatic payments for the business and also shut the business accounts. The Commonwealth Bank of Australia has also closed the accounts for Tan and his co-founder. He admitted that it is frustrating because his company can’t escalate it, particularly, when his bank manager doesn’t know how to handle this.
Asher Tan also questions the stand taken by the Commonwealth Bank of Australia as he says that it was clear since the beginning that CoinJar is dealing with Bitcoin yet the bank continued earlier and now it has decided to close the account.
To contact the reporter of this story: Jonathan Millet at email@example.com