In a move aimed at enhancing security, Capitec Bank has recently blocked Electronic Funds Transfers (EFTs) and immediate payments to cryptocurrency exchanges from its smartphone app and business web interface. This decision, first highlighted by Shiftly co-founder and CEO Carel de Villiers, has sparked discussions among cryptocurrency enthusiasts and business owners.
Capitec stated that the primary reason for this decision is to protect its clients from fraud. The bank’s spokesperson emphasized that this measure is part of their commitment to ensuring the safety and security of their clients’ financial transactions. By blocking payments to crypto exchanges, Capitec aims to prevent potential fraudulent activities and safeguard its customers’ funds.
The decision has had a significant impact on Capitec customers who use cryptocurrency exchanges. For instance, Farzam Ehsani, the co-founder and CEO of VALR, a cryptocurrency exchange, mentioned that only Capitec has implemented this restriction. He advised Capitec customers to use a South African credit card or an account from another bank to fund their crypto accounts.
Capitec encourages its customers to use Capitec Pay as a secure alternative for transactions. The bank is actively working with crypto exchanges that have not yet integrated Capitec Pay to expedite this process. This move is reminiscent of South African banks blocking clients from buying cryptocurrencies on international exchanges with their credit cards due to exchange control regulations.
Capitec has announced that its app now communicates with its Fraud Centre in real-time. This allows the platform to warn customers and block payments if any beneficiaries have reported or confirmed fraud against them. This real-time interception and blocking of suspicious payments is a first for South African banks and aims to provide an additional layer of security for Capitec clients.
The decision has received mixed reactions from customers. Some appreciate the enhanced security measures, while others feel that it limits their financial freedom. Carel de Villiers, Shiftly’s co-founder and CEO, raised the issue on social media, questioning Capitec’s move to dictate how customers spend their money.
