A Major Italian Bank Reverses Its Cryptocurrency Ban

UniCredit, based in Milan and with total assets of 811.1 billion euros, denied on Wednesday that it prohibits its clients from trading cryptocurrency.

The financial giant claims that there was a “miscommunication.” Additionally, it affirms that, in line with its existing policy, it does not invest in cryptocurrencies on behalf of its customers or with its own money.

Cryptography in Italy Twitter erupted last week against UniCredit when the bank explained that it had prohibited clients from engaging with cryptocurrency issuers and exchanges in response to a customer’s accusation that the bank threatened to shut his account if he transferred cash to cryptocurrency trading platforms.

Numerous bitcoin supporters said that the bank would not be left in the dust by resisting new technology, as Nokia, Kodak, and Blockbuster were. According to the Twitterati, UniCredit was purposefully attempting to lose clients by threatening to terminate their accounts. Dissatisfied clients now believe the bank is attempting to rescue face by reversing its Bitcoin prohibition.

Unregulated industry

In June, Consob, Italy’s main financial regulator, expressed alarm about the cryptocurrency sector’s unchecked expansion in the nation. Chairman Paolo Savona said that if there is no united effort inside the European Union, Italy may develop its own regulatory framework for cryptocurrency:

If a solution is not found at the European level in a reasonable amount of time, (Italy) will be forced to take unilateral actions.

Despite the fact that cryptocurrency has developed greatly in recent years, many conventional financial institutions remain unwilling to adopt it. In June, the British bank TSB prohibited its clients from trading cryptocurrency owing to fraud concerns. Nonetheless, Banca Generali, Italy’s largest private bank, has let its customers to purchase and retain Bitcoin.

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