Cryptocurrency not allowed

I had an email today, from Dozens, mentioning transferring cash to cryptocurrency exchanges will no longer be possible from Dozens. Which part of me understands as its a volatile asset and there are people who invest irresponsibly (e.g a large percentage of their portfolio).

On the other hand I’m suprised transactions to these exchanges are banned by dozens. With the increasing regulation, adoption by banks and crypto ETF’s making good progress. Yet I could put money on a betting website or buy an expensive car which is going to depreciate over time.

And they are more than an unproductive digital assets. For example Cardarno creating an ID system for Ethopia on the cardarno block chain. And providing a form of decentralised wealth where governments can’t print more (This also does have downsides I admit).

Curious as to what others thoughts are ? Should we be informed that they are volatile or should we be banned from using the exchanges themselves?

Wow, that’s a big move. This sounds rather overreaching for a bank account. If that’s true, I would be very worried what’s the next on the list? gambling? lottery? tobacco? junk food? I really hope this is not the case. I’m looking forward for some clarification from Dozens.

I don’t think it is an overreach.

I don’t want this to become a religious pro vs anti crypto thing, but whatever everyone’s individual position, I think it’s fair to say that it’s a fact (whether or not we like it) that regulators have major concerns about KYC and AML relating to crypto.

For a small company, it’s probably best for Dozens to just say no. It doesn’t have the resources that, say HSBC or even Starling have: but both of which have previously banned crypto.

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That should be the crypto exchange’s problem, not the banking service provider’s. If the crypto exchange is registered with FCA, I can’t see why should a banking service provider prevent their customer from transacting with them.

Unfortunately the world just doesn’t work that way. Regrettably, it doesn’t really matter what you or I think should be the case: this is an industry / regulation / government thing, not a Dozens thing. And, if you think about it, it makes no commercial sense for PI to do this unless there was a compelling reason to.

We don’t know that.

Remember? Dozens blocked telephone card payments while almost all other banks don’t. That made me thinking this may be again something specific to Dozens, and it isn’t an industry wide action.

Anyway, it will be great if Dozens can clarify whether they have blocked crypto transactions, and the reason behind it.

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Appreciate the feedback on this topic. I’ll just clarify a few things around Dozens’ stance on crypto.

We’ve never offered crypto on our investment platform and now we’ve decided to take that next step and not allow any crypto payments on our Dozens accounts.

Our aim at Dozens is to help customers on their journey from spender to saver to investor, and to improve your financial wellness. Crypto is not aligned with this objective.

@Chris.mca As you say - crypto is incredibly volatile and comes with huge risk.

I do understand your argument about still allowing betting sites transactions etc. but these are heavily regulated industries that have measures in place to best protect and warn customers about the inherent risks. Crypto products are not regulated by the FCA and they’ve warned that if customers choose to speculate on crypto, then they should be prepared to lose all of their money.

There is also a large correlation between crypto payments and fraud. In mid 2020, we found 92.9% of users who made transactions to crypto exchanges on our platform were bad actors. Although this doesn’t represent the current fraud rates (we took action to respond to this clear trend at the time), it reflects the reason for our consistent messaging around crypto since this time and the measures we’ve subsequently put in place. So, not only do we need to do this to protect our customers and ourselves, it’s also part of our obligation to protect the wider financial system and it’s participants from fraud.

It makes sense to highlight our stance so prospective customers are aware and, should they wish to make payments to crypto sites, then Dozens may not be the account for them.

Also, we’re pretty confident that most of our customers are also aligned with this thinking - after all, this recent block has only affected 0.07% of transactions.

I’m sure the debate will rage on with this issue :slight_smile: but we are happy moving forward with this stance.

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I have similar thoughts and this is basically the approach I’d like to see banks adopt. i.e. look at the list of crypto firms that are registered with the FCA for AML/KYC supervision. Allow these and block everything else.

Risk is a cost, so every institution has to weigh the pros and cons. I can’t see any benefit to dozens of supporting crypto right now, unless I’m missing something…

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Don’t think this is particularly new, I got a reversal back on the 13th July when I tried to send some of my funds to Crypto[.]com

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Crypto is at best a pyramid scheme, at worst an outright con, so yeah, completely get the move from Dozens

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