Bitcoin ATM Company Refused Account by Bank of Ireland

Kadhim Shubber
Mar 11, 2014 at 10:08 UTC
Updated Mar 11, 2014 at 15:57 UTC

UPDATE (11th March, 15:51 GMT): BitVendo’s bitcoin ATM has now been fully installed in GSM Solutions, and is due to launch this Thursday at 10am.

____________________________

Ireland’s first bitcoin ATM company suffered a setback yesterday as the Bank of Ireland rejected their application for a bank account.

In addition, the Dublin cafe where Ireland’s first ATM was due to be installed pulled out citing “complications” in hosting the machine.

BitVendo, an Irish bitcoin ATM provider, had intended to launch their first ATM at Hippety’s Café this week, but have now relocated to a nearby electronics store GSM Solutions, where they had been testing the machine. BitVendo’s CEO Megan Dolan said:

“We were only informed as we tried to install the machine. We were told staffing became a concern, it came as a massive shock to us, with no prior notice. We think there is a lot more to it, but can’t expand.”

The sudden change of plan came alongside another blow as the Bank of Ireland told BitVendo they would not allow them to open an account. Dolan clarified:

“[The bank] informed me that: ‘Your account application has been rejected due to the nature of your business. We’re not comfortable with it.’”

Up the ladder

Dolan says their business advisor at the Bank of Ireland claimed instructions came from on high.

CoinDesk contacted a representative from the bank, media relations manager Anne Mathews, who stated that the bank would not comment on individual interactions with customers or potential customers, but added:

“It is Bank policy to assess each application on its own merit, taking a number of relevant criteria into account. In situations where we believe the potential customer does not meet the appropriate criteria it is our policy to decline the application.”

Alan Donohoe of the Irish Bitcoin Foundation, who has been working with Dolan, corroborated BitVendo’s version of events, claiming the business advisor said: “The people above me are rejecting the application due to the nature of [the] business.”

Donohoe said it was the first time he had encountered an Irish bank rejecting a business because it was involved with bitcoin and called on Irish banks to embrace, not reject bitcoin:

“We urge banks in Irelands to consider the future and how bitcoin can help the economy. Its not about competing with government currency, its about the technology and how it can spur growth.”

In tweets to BitVendo, the Allied Irish Banks, one of the “big four” in Ireland, said that in contrast to the Bank of Ireland they do allow bitcoin businesses to open accounts:

 

 

Dolan confirmed that the company would attempt to open an account with AIB sometime today.

CoinDesk is monitoring this developing story, and will post updates as they become known.

Bank of Ireland image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.