Australian Banks Restrict Coinspot’s Deposit Capabilities, Other Services Unaffected

Most people who live in Australia will have come across the Coinspot cryptocurrency platform. It is an interesting company which facilitates the purchase of Bitcoin, Ethereum, and a few other cryptocurrencies as well. Unfortunately, the company is dealing with some significant issues which are affecting AUD deposits. It seems these problems will not be resolved anytime soon either, according to a new update. This is not good news for the company or its customers, but it’s something people will have to deal with for the time being.

Coinspot Deposit Restrictions Remain in Place

Anyone who has tried to use Coinspot this week may have noticed the service isn’t operating as it should be. There are restrictions in place affecting all AUD deposits, which means users can only buy small amounts of cryptocurrency through the service right now. This does not affect withdrawals in AUD or cryptocurrency balances, though, which is a positive sign. At the same time, if people can’t buy cryptocurrency, there’s still a problem which needs to be resolved sooner rather than later.

For Coinspot, it is a bit unclear what is causing the deposit issue. It appears the Australian banks are to blame for this problem, but no one knows the underlying reason at this point in time. It is not the first time issues like these have arisen in Australia, mind you, as the country’s banks are unwilling to work with the cryptocurrency community in any way. It has caused a fair amount of friction, but there is no real change to be expected in the future.

According to Coinspot, the situation has grown so dire that bank account closures are almost becoming the new normal. It is evident a lot of financial institutions around the world have taken an aggressive stance toward Bitcoin and other cryptocurrencies, even though no one knows for sure why that is the case. Perhaps they feel threatened by this new form of money or they don’t want people to spend their money on anything that could negatively impact bank operations.

With the demand for Bitcoin and other cryptocurrencies on the rise in Australia, deposit restrictions are the last thing companies like Coinspot need right now. All they want is to provide an optimal service to their customers, yet they are unable to do so with these restrictions in place. Since the restrictions will not be lifted until the first week of January or later, it is evident the situation has become rather problematic. It would certainly help if the banks were to collaborate with cryptocurrency experts in this regard, but for now, that seems highly unlikely.

While it is understandable that the government and banks would want to limit consumers’ exposure to unsafe vendors, Coinspot should never be counted among the latter. The company has built up a very solid reputation over the years, and it is complying with all existing regulations. On paper, there is no reason to prevent it from offering its services properly, yet for some reason, the Australian banking sector has decided to do so regardless. It is a very uneasy situation, but Coinspot is working toward a long-term solution.

For now, its course of action is to establish relationships with new banking partners. Which financial institutions will be of assistance in this regard remains unknown for now. It is good to see the Australian cryptocurrency service provider be so transparent regarding this matter. Most other companies wouldn’t go in-depth about their problems and would keep customers partially in the dark. We can only hope Coinspot can resume its normal operations sooner rather than later.