Australian bank bars credit card purchase of cryptocurrency

The decision comes into effect as of February 14, 2018
14 February 2018   571

Commonwealth bank of Australia made an annoncement today of it blocking all CommBank credit cards from buying virtual currencies, like Bitcoin. Given the unpredictability and lack of regulation of the cryptocurrency market, customers of CBA as of today, February 14, will no longer be able to acquire this type of currency with CBA or Bankwest cards. The bank compared the standards of the traditional currencies and of the virtual ones and concluded that the virtual currencies do not satisfy even the minimum standards.

However, clients of CBA can still purchase the virtual currency via transaction accounts and debit cards. Besides, the situation with cryptocurrencies is highly dynamic and the bank’s position is constantly reviewed.

Thus, CBA has become the first Australian bank to officially forbid the purchase of the virtual currency to its clients. And in doing so joined a notorious list of UK (Lloyds) and US (JPMorgan, Bank of America, Citi) banks with similar restrictions. Despite the regretable decision, other Austalia banks like ANZ or Westpac have not and will not place any similar restrictions. So the CBA’s decision is highly unlikely to become a trend.

Crypto Exchange White Label Service launched by OKEx

OKEx, one of the biggest exchanges in the world, has declared the run of a crypto exchange creation programme ‘Digital Asset Exchange Open Partnership Program’
20 June 2018   81

The announcement claims that the programme is intended to “nurture a new generation of digital asset exchanges”. To establish a new crypto exchange, interested parties have to provide OKEx with a domain name, logo, and specialties of the management team. They are assured to possess “solid industry experience, quest for service excellence, and strong industry influence.”

Applicants should also deposit 500,000 OKB tokens into their accounts. This equals around $2.5 million at the present rate, according to OKB is a utility token that were first sold in March of this year in packages of up to 100, each costing $100. They can be applied to settle transaction fees on the exchange and traded for Bitcoin, Ethereum and Tether.

The applicants will get access to OKEx’s fitting system (which links up buy and sell orders), cold and hot wallets (offline and online cryptocurrency storage), clearing system (which handles money transfer), client support system, and know-your-customer and anti-laundering systems. They will also get support from the OKEx technical team.

100 places are suggested by the programme in its first phase. It is anticipated to start in July. The announcement also points out the setup that the new exchanges must have. They will develop their own native tokens, and distribute them as follows:

  • 25 percent to themselves;
  • 24 percent to OKB holders;
  • and 51 percent to be mined.

OKEx explains the mechanisms by which the tokens will be mined/released. The term white label was firstly invented in the music industry - a white label vinyl record was a release so new that it had not yet been labelled, a much sought-after thing. Presently it cites to a service or product manufactured by one company and sold to another for re-sale under a different brand name.