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Encrypted currency exchanges across the country have all vanished overnight, what happened in Bulgaria?



All of Bulgaria's bitcoin exchanges "disappeared" overnight due to the sudden "repression" of banks. It seems that after careful planning, Bulgaria's major banks took prompt action to shut down accounts of several cryptocurrencies.

Bank and bitcoin warAll of Bulgaria's bitcoin exchanges "disappeared" overnight due to the sudden "repression" of banks. It seems that after careful planning, Bulgaria's major banks took prompt action to shut down accounts of several cryptocurrencies.

Bank and bitcoin war


Crypto-Exchanges, like their clients who love cryptocurrencies, have a weakness: They have to rely on traditional banking. It is easy to transfer bitcoin, and it is difficult to transfer legal tender inside and outside the exchange - especially after the bank refuses to service you. December 7, the Bulgarian bitcoin forum referred to this incident, the moderator wrote:


We know there will be this day, but we do not know how fast this day has come. It seems that the financial system is facing tremendous panic.
Bulgaria, like all other neighboring Balkan countries, is a technology-savvy country and has embraced bitcoin and the wealth-freedom philosophy it has brought. However, the country's traditional banking system seems to suppress crypto currency exchanges out of resentment and personal gain rather than receiving instructions from the government. In the forum, an exchange CEO affected by this incident pointed out:


UBB informed us a couple of days ago that they would close the account we used to encrypt currency transactions. After talking with the bank's leadership, I realized that this is just the bank's own decision, and has nothing to do with regulatory policies.
At the moment, all exchanges in the country are either temporarily off-line or the services provided are severely curtailed, and most exchanges have issued announcements to explain their current situation. The affected exchanges include Cix.bg, Crypto.bg and Cryptobank.bg. Cryptobank.bg can still continue trading, but can only accept funds via e-wallet.


Crypto-Exchanges, like their clients who love cryptocurrencies, have a weakness: They have to rely on traditional banking. It is easy to transfer bitcoin, and it is difficult to transfer legal tender inside and outside the exchange - especially after the bank refuses to service you. December 7, the Bulgarian bitcoin forum referred to this incident, the moderator wrote:

We know there will be this day, but we do not know how fast this day has come. It seems that the financial system is facing tremendous panic.
Bulgaria, like all other neighboring Balkan countries, is a technology-savvy country and has embraced bitcoin and the wealth-freedom philosophy it has brought. However, the country's traditional banking system seems to suppress crypto currency exchanges out of resentment and personal gain rather than receiving instructions from the government. In the forum, an exchange CEO affected by this incident pointed out:

UBB informed us a couple of days ago that they would close the account we used to encrypt currency transactions. After talking with the bank's leadership, I realized that this is just the bank's own decision, and has nothing to do with regulatory policies.
At the moment, all exchanges in the country are either temporarily off-line or the services provided are severely curtailed, and most exchanges have issued announcements to explain their current situation. The affected exchanges include Cix.bg, Crypto.bg and Cryptobank.bg. Cryptobank.bg can still continue trading, but can only accept funds via e-wallet.



Double blow


Cryptobank's limited service means that users have a double blow. Also this week, the exchange suspended the Ethereum deal because "the Cryptokitties game caused the deal to become clogged, and the gas required also tripled." For Bulgarians who want to buy cryptocurrencies, Localbitcoins.com has a limited number of sellers and basically trades only in Sofia and Plovdiv, but they can also use foreign bitcoin exchanges such as Bitcoin.de.


Speaking of bank sanctions against bitcoin, Bulgaria is not the only country that has ever had such an incident. With the crazy rise in the price of bitcoin, this indicates that the new monetary world will come forth in the future and the fear of the conservatives in the financial world is already evident. Banks in this Eastern European country have belittled the cryptocurrency exchange, but it is likely that soon they will be able to gain inspiration from the government's actions. In May this year, Bulgarian law enforcement agencies cracked down on a series of criminal activities and eventually seized over 213,000 bitcoin . Today, the value of these bitcoins has reached 3.5 billion US dollars - or 6% of Bulgaria's GDP.