Bitcoin frozen bank account
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Multiple banks in China, such as the Bank of China, Agricultural Bank of China and others have come forth to clarify that banks will only freeze accounts that are related to criminal and illicit activities, such as money laundering or scams. Editor at SuperCryptoNews. A strategic creative with operational skills, and well-versed in visual story-telling across multiple platforms.
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Tags: Regulation. Here's Reddit user "pibyk" writing on the Bitwala sub-Reddit a couple of months ago:.
China freezes crypto traders’ bank accounts
So there is nothing to recover and no hassle to get the money back. The message I got was meaningless, and their customer service failed to respond in any reasonable time. As far as I am concerned this action constitutes a serious breach of trust, so I am no longer interested in such an unreliable service.
This kind of problem isn't exclusive to Bitwala. Another reportedly 'crypto-friendly' bank — the UK-based Revolut — has also received a number of Reddit complaints, including this one :.
Legally, what can a customer do if their account is frozen by their bank? In terms of taking specific legal actions, the disappointing answer to this question is: nothing.
Still, Kaufmann advises that customers take the practical step of contacting their bank wherever possible and of cooperating with them to get the account back online. Legal action will be time-consuming, costly, labor intensive and there is limited likelihood of success unless the bank is wilfully refusing to release funds or not following a reasonable and appropriate procedure.
But yes, assuming that the bank is wilfully refusing to release funds and has no legal grounds for doing so, then legal action may very well be viable. Given that banks are also regulated, much the same applies if your bank is preventing you from withdrawing your money.
Unfortunately, civil legal actions may not be successful, particularly if prosecuting and enforcing judgments are likely to be challenging. It almost goes without saying, but it's never a good idea to deal with an unregulated bank, so it's unlikely that most people will ever find themselves in such a situation.
Still, contacting the relevant financial regulator and asking for advice, in cases where your bank is being consistently unhelpful, is usually a good idea.