Capitec, a leading South African bank, has reportedly blocked electronic funds transfers (EFT) and immediate real-time clearing payments to cryptocurrency exchanges via its mobile app and business web interface, citing fraud prevention. The bank acknowledged growing interest in cryptocurrencies but maintained that the measure is necessary to protect clients.
Payment Block Sparks Controversy
According to local reports, Capitec introduced the restrictions after an app upgrade enabled direct, real-time communication with its Fraud Center. A Capitec spokesperson stated: "Capitec is committed to protecting our clients from fraud, which is why we made the decision to block EFT and immediate real-time clearing payments to crypto exchanges on our app and business web interface."
However, Capitec still allows clients to send payments to exchanges via Capitec Pay, which it describes as a secure alternative. The bank is working with crypto exchanges that have yet to integrate with Capitec Pay.
Crypto Industry Fires Back
Several key players in South Africa's digital asset space have criticized the move, calling it discriminatory and an attempt to restrict crypto trading. Ehsani, founder of Valr, one of the country's largest crypto exchanges, noted that the restriction is isolated to Capitec and advised affected users to consider using a credit card or opening an account with another bank.
Industry observers worry that Capitec's decision could hinder the growth of South Africa's crypto ecosystem and set a damaging precedent. While some local banks have previously tightened scrutiny on crypto-related flows, outright payment blocking remains unusual. The development has reignited debate over tensions between traditional finance and the crypto industry.