Cryptocurrency user Jordan Spencer recently received a letter from his bank warning him that his account would be closed if he continued to buy and sell cryptocurrency through the popular website and app Coinbase. The bank, Lakestone Bank and Trust also ominously threatened to keep an eye on his account to make sure that he obeyed.
Spencer posted the letter in a Facebook group for Ethereum traders to warn others about possible penalties or sanctions from banks.
The letter stated that:
"We are happy to have you as a Lakestone Bank and Trust customer and would like to fulfill your banking needs, but it has come to my attention that you are making purchases and receiving funds from Coinbase.com - A type of business transaction that is against Lakestone's policies and will need to be discontinued immediately. We will continue to monitor your account and if we see that these types of transactions continue we will be forced to take other action, up to and including closing the account."
The post quickly went viral and created an uproar among cryptocurrency enthusiasts, who quickly spammed the bank's Facebook page with negative reviews and comments.
Cryptocurrency is obviously a threat to the traditional financial system, with a market cap of over $600 billion and rising every day, which far exceeds that of most major banks.
It was reported this week that daily cryptocurrency markets are now doing the same volume as the New York Stock Exchange.
Last week, the SEC issued a statement warning investors about cryptocurrencies not being regulated by governments. The statement is interesting considering that the SEC has allowed, if not assisted, in the many financial scams that have left so many people destitute.
"Speaking broadly, cryptocurrencies purport to be items of inherent value (similar, for instance, to cash or gold) that are designed to enable purchases, sales, and other financial transactions. They are intended to provide many of the same functions as long-established currencies such as the U.S. dollar, euro or Japanese yen but do not have the backing of a government or other body. Other often-touted features of cryptocurrencies include personal anonymity and the absence of government regulation or oversight. Critics of cryptocurrencies note that these features may facilitate illicit trading and financial transactions and that some of the purported beneficial features may not prove to be available in practice," the statement said.
Many cryptocurrency traders are fearing that more restrictions and regulations from governments are likely on their way.
If these sort of crackdowns from banks aren't resisted by customers, we can expect them to increase. The centralization of power and control of currency is what gives the banking elite their power—cryptocurrency is a threat to that power as its very nature is based on decentralization.
As we reported earlier this week, the idea of cryptocurrency has actually been popular among crypto-anarchists and privacy experts for decades, and was predicted in Timothy May's 1994 manifesto “The Cyphernomicon.” In the book, May prophesized about “sophisticated financial alternatives to the dollar, various instruments, futures, forward contracts, etc.”
Cryptocurrency is providing this financial alternative. Banks can either respect the wants and needs of their customers through facilitating a mutually beneficial relationship with those who wish to deal in both US dollars and crypto—or, they can die a slow economic death as cryptocurrency makes them obsolete.
Lakestone Bank and Trust appears to have made their decision.
This is precisely the reason to buy more!
I'll just guess he told the banksters to go f*** themselfs!
Next step for most people is to go full crypto and leave these prehistoric creatures behind us...
Banks see in the crypto currency of a dangerous competitor
There were a lot of ICOs for financial technology that got funded this year, just wait until they're ready for market starting in 2018. If traditional banks continue to discourage the use of cryptocurrenies it will just encourage more people to take their money out of traditional banking systems and into decentralized ones. Change is coming, the better play for the banks is to be early adopters of these technologies, and offer them as special services.
Dear friend
your post is very Excellent
LOL over that rating decline! thx for sharing
hi Dear friend
I am a poor in this steemit life
so look at me kindly
Insightful post! I think the banks have a lot to fear when people decide to make the much needed change into using cryptocurrencies instead of the hyperinflated fiat Petrodollar. There's much to be said on the value of trading outside of mainstream avenues, and I see cryptocurrencies becoming an even greater asset as blockchains evolve and alternative currencies become a more well known household name. Personally, I'm looking forward to seeing the dollar collapse.
Dear friend
Like getting a good comment
Hi, I do the best I can to comment on good content. It also helps if other people provide much sought after feedback instead of the usual spam. Commenting has been the one area I can honestly say has generated me the most income, which isn't much but a little bit never hurts.
I think you will see more and more government and bank intervention because people hate giving up power and control. Fortunately, so many people are joining in crypto everyday that its too late to turn it back and they will be on the wrong side of history.
100% upvote and Resteemed! Thanks so much for sharing this important development. The banks are the feudal lords and if they can't control us they will do everything they can to destroy us, rather than lose their slave labor.
very good
This is not the first letter I have heard of.
What gets me is how banks intend to stay in business.
They are offering less and less service. They are making it harder and harder to work with them.
And, it is only a little bit more coding before cryptos will be everything a bank can be.
Now, if only utility companies would accept crypto payments. (well, at least they take CCs now)
They can not ban it outright, but they can make it very difficult to use
Betcquin has lost its value today but may be coming back in the coming days
Good information Thank you for sharing with us
This just happened to me too, last week had no issue buying on coinbase, this week I go to do the same thing, call my bank so they will unblock my card and they say some bs about having changed their policy, that it's a high risk, high-fraud transaction and that they won't do it. They also mentioned something about mastercard having something to do with it but not sure on that.
I was just so confused, like it's my money, I don't care if it's high risk, high fraud, thats what i want to do. Time to find a new bank in the short term, unless anyone knows an easier way to get fiat into crypto than coinbase. Such BS
I wonder if Credit Unions would be more ammenable to cryptocurrencies as they are cooperatives and the members could force the CU to allow it.
thats the plan!
I wish my bank sent me this letter.
I would send one right back.
Dear Bank,
Go and F*** Yourself.
Warm Regards,
Farq.
while it's making it's way to them in the mail, withdrawal all funds, close all accounts, and bank elsewhere.
Banks are a dime a dozen - they don't have any right to be dictating anything to us.
Wells Fargo is also not allowing coinbase transactions from what I hear...