Bank Attacked After Officially Blocking All Crypto Payments
Capitec Bank, one of South Africa’s leading financial institutions, has reportedly blocked Electronic Funds Transfer (EFT) and real-time clearing payments to cryptocurrency exchanges as part of its efforts to combat fraud.
According to a report, the restrictions specifically target transactions made via smartphones and Capitec’s business web platform.
Despite these new measures, Capitec acknowledged the growing popularity of cryptocurrencies in South Africa and emphasized that clients can still make payments to crypto exchanges using Capitec Pay, a “secure alternative” payment method.
A spokesperson for Capitec described the move as a protective measure aimed at safeguarding customers from fraudulent activities.
“Capitec is dedicated to ensuring our clients’ safety, which is why we have blocked EFT and real-time payments to crypto exchanges through our app and business web interface. Client security is our top priority,” said the spokesperson.
Crypto Community Reacts to Payment Restrictions
While Capitec has positioned the decision as part of its fraud prevention efforts, some in South Africa’s cryptocurrency sector view it differently.
Critics argue that the bank’s action could be seen as a deliberate attempt to limit crypto trading. Some have also expressed concern that the move unfairly targets cryptocurrency users and may slow the growth of the digital asset industry in the country.
Farzam Ehsani, founder of Valr, one of South Africa’s leading crypto exchanges, commented that the restrictions seem unique to Capitec. He advised affected customers to consider using a South African credit card or switching to a different bank.
