Barclays and HSBC block accounts of "Crypto-Generating" bicycle retailer

24 Aug, 2018
by David Borman
Barclays and HSBC block accounts of Crypto-Generating bicycle retailer

NewsBTC is running a story about a UK based bicycle retailer who has had multiple accounts shutdown by HSBC and Barclays, apparently for trading in bitcoin. The retailer is known for offering bikes that can generate cryptocurrency as you ride them.

Scott Snaith, owner of 50cycles, recently saw multiple of his accounts shut down by major financial institutions HSBC and Barclays. The retailer regularly accepts crypto and trades it for cash on an exchange. All of this is done in an “entirely transparent and above board” manner, according to Snaith.

Shortly after the incident, Snaith released a statement which was fairly scathing, especially because of how badly it hurt his business. From the statement:

"The banks are deliberately creating obstacles. They are anti digital currency and displaying a new form of financial discrimination. The message is clear: your funds are not yours."

Apparently, after this complaint, HSBC did reactivate Snaith's account. It is being reported that Barclays is still refusing, but have stated that they "never take the decision to issue a notice of closure, or end a client relationship, lightly.”

It will be interesting to see how the rest of this plays out. Hopefully this does not set a precedent for banks just closing accounts simply for being associated with cryptocurrency.

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