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.

19 COMMENTS

  1. But, why do they care how or where I spend my money, their job is not to tell me / us where to spend our money, it is ours, they are working for us, not the other way around, plus, they are making a lot of money from the transactions that are occurring from Bitcoin – why would they not want to faciliate people who are using their service ?? people are still not 100% laying their trust in crypto, so the banking sector will only benefit from this.

  2. Clearly the banks are threatened by the very existence of Crypto and thus are trying to do whatever in their means to slow the progress. They will not succeed. A revolution is imminent! VIVA LA CRYPTO!

  3. The company has stated deposits will resume after the holidays, since banks are closed at this time. Amazed that you would write a whole article and not post their statement.

    • The company stated that banks are causing problems and refusing to work with them. This is exactly what the story is about. You’re referring to the first sentence of a 4 paragraph explanation.

      ******
      Welcome to CoinSpot.
      ×Please note: We have temporarily disabled new AUD deposits. Withdrawals and buy/sell are not affected and will operate as normal. less info

      The temporary restriction on AUD deposits will remain in effect until at least the first week of the new year. AUD Withdrawals, coin deposits, buy/sell orders and trading on the platform will continue to operate as normal.

      We assure you we are just as unhappy with the situation as you, but unfortunately Australian banks have been so far unwilling to work with the digital currency industry which leads to frequent account closures and strict limits on accounts whilst they remain operational, in effect debanking our industry.

      As the demand for Bitcoin and other crypto assets skyrockets it is in everyone’s best interest to ensure we have regulated, safe and stable digital currency service providers instead of pushing Australian consumers underground, to potentially unsafe vendors. It is our purpose to drive safe adoption of crypto assets and we assure you that we will continue to work on establishing a relationship with a banking partner so we can resume accepting AUD deposits as soon as possible.

      Thank you to everyone for their overwhelming support during this time and we are really excited for what looks to be a massive year ahead for our industry.

  4. The banks are scared, I say be very afraid banks, this new form of fast & cheap money transfer will put a huge dent in their bottom line once it becomes main stream, Blockchain tech is taking over

    • Absolutely. I know people who send Crypto to their family overseas, instead of using Western Union/Banks – which charge disgusting fees, then give disgusting exchange rates.

      By the time the family pick up the crypto money overseas, it has usually gone up in value also. This is the uber of money, the Air BnB of cash. Things are changing, and the banks will soon be the taxi rank among Uber options.

  5. This is the exact reason why there is crypto the gangsters sorry l mean the banks actually think the people’s money belongs to them .
    This is a disgusting move since crypto is going down we might believe the banks have taken a position and will buy while the people can’t spend their money.
    Sorry they are Gangsters!!!

    • No no.. They are more than happy for you to wildly invest in various stockmarket scams (Storm Financial etc) and at that point – it’s your own fault if you make a bad decision..

      But this.. Well.

  6. I put my money in Crypto (not Bitcoin, but other coins) and make 10% in half a day, and pull it out into AUD straight away.

    Or, I can open a Westpac fixed term savings account and get 2.5% for a YEAR.

    Gee, I wonder why they feel threatened.

    • yeah sure you put every dollar you have into crypto right? Super. savings everything. Make 10% and then pull it out after half a day, What are you scared of? Keep the lot in there if you are so sure of the crypto scene take advantage of of those several thousand % gains
      Thing is mate I don’t believe you. Seen the fee structure of CoinSpot. What a scam. 3% for a cash deposit. See how much they take when you want it back The Company is a joke. and so are u…

      • I’m a joke? Such personal attacks and aggression. Look at the gains, do your homework instead of throwing around hate. Miserable human.

        Take a look – QSP alone gained 500% in 2 weeks. 3% off this is a laugh for the service. I don’t mind paying 🙂

        You actually think it’s all untrue, and everyone is lying at the same time, pretending they are making money, and taking profits. What on Earth is wrong with you?

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