Monday, July 29, 2019

How The Financial System Criminalizes Crypto-currency



Not having a bank account is a resource that most people my age would not just take for granted but will also work hard to accrue a four-figure balance at a minimum. Few people wax lyrical about banks and politicians in our society but easily accept that they are an unavoidable part of civilized society. Banks are keen on improving their services and rendering better ways of doing business since they think the introduction of digital currency would make the banking system obsolete.

Banking is one of the few round-the-clock routines of our lives. In one's lifetime, friends and employers come and go but we are prone to stand with our bank through thick and thin. For the people who work in crypto-space, they have cause to cash out bitcoin to pay the bills. With the use of Local-bitcoins (LBC) for this purpose typically selling a few currencies at a time with the buyer transferring the equivalent to the seller's account. You can complete hundreds on trades on LBC without triggering the involvement of your personal bank.

The annoying thing is all this can change in an instant. People get caught up with their ATM cards being declined just when they needed to withdraw some cash. It's even disgracing when your card gets declined while trying to buy a drink for a girl at a bar. Concluding that your bank's entire system could be down, you would open your mobile banking app only to find out that it was locked too. As anyone who has had their card blocked will agree that it creates an atmosphere of helplessness intertwined with embarrassment around you. Now it's time to be phoning your friends to bail you out.


Suspicious Activity

Now banks temporarily block your accounts in the name of "suspicious" transactions with accounts
of their customers. These investigations can take forever and these incidents normally date way back sometimes even the clients do not recognize these transactions. Since temporarily losing your bank account doesn't restrain your money, you also lose access to all the payment details pertaining to all transactions. It's a total ball-ache.

Bitcoin isn't bad




Most bank pay-in references flag all Local-bitcoins as suspicious. When selling bitcoin, you have no idea who you are selling to. Normally people careless and also you do not care what the buyer would use the currency for. People who engage in these trading are just like any other traders on a platform hence the likelihood of these transactions involving any sort of fraudulent activity is extremely low. Having your account shuttered without warning by your bank because you used your account for trading in LBC isn't fair. If a bank wants to discuss these transactions with clients, they should make good use of their details by contacting them thus no need to freeze the account to get client's attention. They should even go further to seek the assistance of the client in investigating these "suspicious" transactions.

Same everywhere

I am not in the position to recommend banks, but I am interested in learning more about this predicament. I can't vividly say there are banks that allow these transactions to be carried out. Unregulated peer to peer money is an existential threat to all governments. These currencies do not allow centralized issuance or control directly. As a result banks are going all out to seize accounts of their clients who are promoting the use do this currency.

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