File pic Photo: 123RF
One of the largest crypto currency dealers in New Zealand is calling out what it says is bullying behaviour by some of the biggest banks.
Easy Crypto co-founder and chief executive Janine Grainger said the cryptocurrency community was once again raising concerns about the behaviour of some big banks, who it says sometimes refuse to complete transactions made to cryptocurrency firms, such as Easy Crypto.
"Just within the last week, we have been denied by three different banks to open an account with them for a new product launch," Grainger said.
"It's a really big challenge we find in the sector -- people not being able to use their bank accounts as they wish or not even able to get a bank account in the first place."
She said some financial institutions had a tendency to think no one would fight back against measures designed to dissuade people from using cryptocurrencies.
"As the world of finance and digital innovation continues to evolve, big banks must recognise that change is inevitable if they want to remain globally relevant and competitive," she said.
"Disappointingly, it's become common for those using crypto to receive a phone call from their bank as soon as they send a payment to an exchange, with the bank telling them that the exchange is a scam and they'll lose all their money."
Ther were cases of banks refusing to process crypto payments or to threaten to close the accounts of customers who continued to make crypto purchases, she said.
"We're living in a world where money is increasingly digitised and if you don't have access to a bank account, it can be really hard to operate.
"And as a business, that's just impossible, right? You can't run a business without a bank account."
The government should compel banks to provide access to services, she said.
"If you're not breaking the law, if you're complying with the bank's terms and conditions, you shouldn't be refused access to have a bank account. That's what I would love to see the government do."
Grainger said it was also important for banks to embrace the innovations offered by cryptocurrencies.
"Given the fast-moving nature of innovation, particularly in the crypto space, it's essential for banks to reflect on their behaviour and guard against bully-like tendencies," she said.
"Those reluctant to embrace the world of crypto are missing out on a plethora of innovation that could help shift the dial on their ability to compete for customers."
RNZ has asked the five biggest banks in New Zealand for comment.