South African bank Capitec has blocked electronic funds transfers and real-time payments to cryptocurrency exchanges as a security measure. While Capitec acknowledges growing interest in cryptocurrencies, the bank maintains that the measure is necessary to protect clients from fraud. Some industry players view this move as an attempt to restrict crypto trading.
Crypto Payments Blocked as Anti-Fraud Measure
Capitec, a South African bank, has reportedly blocked electronic funds transfer (EFT) and immediate real-time clearing payments to cryptocurrency exchanges as part of its anti-fraud measures. According to a report, the new measure targets payments made via smartphones and Capitec’s business web interface.
However, Capitec acknowledged the growing interest in cryptocurrencies among South African residents and said it will still allow clients to send payments to exchanges using Capitec Pay, a “secure alternative” method.
A spokesperson for Capitec described the measure as a security step to protect the bank’s clients from fraud.
“Capitec is committed to protecting our clients from fraud, which is why we made the decision to block EFT and immediate real-time clearing payments to crypto exchanges on our app and business web interface. Ensuring the safety and security of our clients’ financial transactions remains our top priority,” the unnamed spokesperson said.
Crypto Industry Criticizes Payment Block
The South African bank has said it is working with cryptocurrency exchanges that have yet to integrate with its Capitec Pay platform. Capitec, one of South Africa’s largest banks by market capitalization, introduced the measures after an app upgrade enabled direct, real-time communication with the Fraud Center.
While Capitec has framed the change as an anti-fraud measure, some key players in South Africa’s digital asset space see it as an attempt to restrict crypto trading. Others have criticized the move, claiming that it is discriminatory and unfairly targets cryptocurrency users. Some have also argued that it could hinder the growth of the crypto industry in South Africa.
Ehsani, founder of Valr, one of South Africa’s largest crypto exchanges, said the measure is isolated to Capitec. He advised impacted users to consider using a South African credit card or opening an account with another bank.
What are your thoughts on this story? Share your opinion in the comments section below.
