Reason to trust
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
A new report from bitcoin news website CoinDesk indicates that Capital Treasury Services (CTS) — a subsidiary of Capital International Group — is planning to sever ties with businesses operating in the digital currency space next month on the Isle of Man.
Capital Treasury Services serves as, well, a treasury service for a large number of businesses. Working with large banks like HSBC, the service clears customer funds, but increased pressure from its banking partners have introduced some issues for these businesses that work in the cryptocurrency space.
Quoted from CoinDesk, the following is a statement produced by CTS on the matter:
[blockquote style=”2″]”Although support from government is very strong and we have been keen to get behind the government’s initiative, we are only able to do so with the wider support of the financial sector, which has unfortunately now been withdrawn.”[/blockquote]
Unfortunately for businesses operating in the space, CTS says they’re quite simply going to refuse them service. Further, they’ll be shutting down the accounts of businesses they currently work with that operate in our industry.
(Clients who will have their accounts closed will still be able to receive funds for two weeks. Outbound payments are said to be available until October 15th.)
The statement from CTS continues to say:
[blockquote style=”2″]“We will be working closely with those businesses already with us in order to find alternative providers and solutions, and are happy to talk with businesses and provide guidance from our experience in the sector.”[/blockquote]
There will of course be alternative options for these businesses that are about to be left in the dark, but one can’t help but to feel a bit discouraged by the news.
Still, there’s hope, and reports indicate that the government on the Isle of Man are doing their best to help these companies in the digital currency space continue their work and move forward.
