- UniCredit has been fined $144 million for illegally closing the accounts of a crypto mining firm.
- Although there has been a shift in attitude across financial institutions, some remain hesitant to do business with crypto-related businesses.
Pan-European Commercial Bank UniCredit has been fined $144 million for illegally closing the accounts of a crypto mining firm. A subsidiary of Bitminer Factory reported the inappropriate closure of its accounts, accusing the UniCredit Banja Luka branch. It further registered that the improper closure “prevented the Initial Coin Offering associated with startup projects in the cryptocurrency mining sector using renewable power in Bosnia and Herzegovina.”
UniCredit withdraws service from crypto mining firm
The crypto mining firm is present in Bosnia and Herzegovina due to the country’s flat power charge. To have a running project, it opened bank accounts with UniCredit. Initially, UniCredit allowed the crypto mining firm to withdraw profits from the sale of mined crypto to its accounts. Later on, the financial institution restricted the facility in claims of not being able to service crypto firms and contractors.
During the lawsuit, UniCredit could not provide legal documents supporting its claims of service restriction to crypto firms. On the other hand, the evidence brought forward by the crypto mining firm was valid and adequate. As a result, the district court in Banja Luka ruled that the UniCredit office in the country pays a fine of 131 million Euros ( about $144 million) in damages. UniCredit does not seem satisfied with the ruling and has appealed the verdict. According to the commercial bank, the sentence “is not definitive, binding, nor enforceable.” It further noted:
Possible liability will be determined only by the definitive outcome of all available procedural remedies and not before the filing of a definitive and binding sentence by the appeals court.
UniCredit maintains anti-crypto stance
UniCredit refusing to service crypto mining firms, merchants, or holders is not a first. Responding to a Twitter user in January, UniCredit said in Italian:
Hello, the current Group policies prohibit relations with counterparties issuing virtual currencies or acting as exchange platforms.
Financial institutions sparked reactions from the crypto community as many of them refused to provide crypto-related services. Last year, a lot of banks stopped processing transactions involving cryptocurrencies. The UK is regarded as one of the most anti-crypto nations. Apace with the US, as its financial institutions and regulators have increasingly strived to restrain the field. Recall that European HSBC blocked transactions from UK digital asset exchanges in 2021.
It is not to say that all banks are anti-crypto. Other banks offer crypto services, as well as issue digital currencies. The Commonwealth Bank of Australia has taken an exemplary figure since it recently announced the offering of crypto services. Since then, the bank has been unveiling more services for crypto holders.
The Cryptocurrency world is seeing an expansion, and most service providers are shifting to reach complete consumer needs. Crypto mining activities have been booming over the past year.
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