It’s not just US banks; Canadian banks are refusing Bitcoin businesses

After a string of US banks closing the accounts of Bitcoin businesses, it seems that Canadian banks are following suit, well at least the Royal Bank of Canada, or RBC.

Two Canada based exchanges, VirtEx, and Canadian Bitcoins, have both had their RBC accounts closed…no explanation given.

Via the Financial Post

“Virtex, based in Calgary, is an online market that matches Bitcoin buyers with sellers, with about $13-million of trades under its belt.

But earlier this month Royal Bank of Canada quietly informed Mr. David that it would no longer do business with his company.

They shut down our account without any reason,’ said Mr. David, an ebullient entrepreneur with a background in technology companies. ‘They just said we have the right to refuse service to whomever we wish.

For whatever reason, many in Canada’s small but fast growing Bitcoin community are suddenly dealing with the same problem: The banks have decided they don’t like the cryptocurrency and they’re shutting down some of the accounts of businesses that deal in it.

A spokeswoman for RBC declined to comment on the matter, saying that the bank does not comment on individual clients.

Meanwhile the Canadian Bankers Association said it has no position since Bitcoin ‘is essentially an electronic currency that operates outside of the traditional national currency system.’

The Bank of Canada also has yet to take an official position, said Dale Alexander, a spokesman for the central bank. But in an emailed statement he went on to quote the Currency Act which defines legal tender as any bills or coins issued under the auspices of the Bank of Canada or the Royal Canadian Mint. The note also included a link to a European Central Bank study warning that virtual currencies such as Bitcoin are ‘inherently unstable,’ ‘not regulated or closely supervised,’ and ‘could have a negative impact on the reputation of central banks.’”

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