Italian Bank, Unicredit, to Ban Crypto Transactions

Italian Bank, Unicredit, to Ban Crypto Transactions
  • Italian bank UniCredit restricted crypto transactions.
  • The bank shared the news on its official Twitter account
  • Also, Italian regulators previously restricted Binance from operating in the country.

Italian bank, UniCredit, announced plans to ban crypto transactions. The bank shared the news on its official Twitter account.

The tweet roughly translates to,

Hello, the current Group policies prohibit relations with counterparties issuing virtual currencies or acting as exchange platforms.

The bank has also notified users that a failure to comply with the ban will lead account closure. Needless to say, the tweet elicited mixed reactions from Italian crypto enthusiasts. While some users slammed the bank for its archaic view and anti-crypto stance. Other users brushed off the news stating that intermediaries, like banks, cannot snuff out crypto trading.

Further, critics highlighted that UniCredit does not officially have a policy against crypto.
As a result, it is still unclear if the stance could affect companies beyond the crypto ecosystem. For now, the restriction seems to specifically target Coinbase and Crypto.com exchanges.

Prior to this, Italian regulator Commissione Nazionale per le Società e la Borsa (CONSOB) blocked trading on Binance crypto exchange. At the time, Italy was one of several countries that banned or restricted trading on Binance. Other countries that restricted Binance include the UK, Japan, Thailand, and Canada among others.

The UK Financial Conduct Authority cited concerns over crypto volatility. Similarly, UniCredit mentioned volatility as a cause for concern. In addition, UK banks like TSB accused the leading crypto exchange of low security which was aiding scammers. Due to the low security standards, scammers were apparently setting up e-wallets on Binance. Further, TSB claimed to have received over 800 crypto related claims in just one month.

Meanwhile, a 2020 Statista survey revealed that 48% of Italians used crypto for online purchases. This indicates a high rate of crypto adoption in Italy. Meaning UniCredit clients are more likely to find alternative banking solutions rather than comply with the crypto restriction.

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