New Zealand Exchange Bitnz Shuts Down Due to ‘Banking Hostility’

The New Zealand Bitcoin exchange Bitnz has recently announced to its customers it will be closing its doors soon. The company explains the unfortunate closure is due to a New Zealand banking system that won’t allow Bitcoin operations to hold bank accounts.

Also read: How Japan’s New Regulations Affect Bitcoin Exchanges

Bitcoin Exchange Bitnz Closes Its Doors Due to Banking Issues

Many New Zealand bitcoiners were sad to hear the Bitnz exchange was ceasing its operations. The exchange has asked all of its customers to withdraw funds by April 15 as trading bitcoins is now “impossible” for the company. Bitnz recommends using its sister service Instabit for New Zealand customers looking for another alternative. The company explains on the New Zealand Bitcoin subreddit:

Bitnz is closing down. Due to the refusal of NZ banks to allow bank accounts for the purpose of trading bitcoins, it is impossible for us to continue operations. Please withdraw all funds from Bitnz before April 15, 2017. Thanks for all your support over the years (I have processed over 11000 bank transactions since 2011) it has certainly been an interesting ride.

Is This Story Similar to the Alleged Australian Banking Blockade Against Bitcoin Companies?

New Zealand Bitcoin proponents on Reddit say the banking issue is similar to last year’s alleged financial blockade against Bitcoin companies in Australia. However, the Australian Competition and Consumer Commission detailed during its inquiry that the banks did not collude to block local Bitcoin companies. 17 Australian Bitcoin businesses had received letters stating that their accounts were closed.

New Zealand Exchange Bitnz Shuts Down Due to Banking Hostility
Bitnz’s website stating it will be closing the exchange.

The New Zealand exchange Bitnz’s founder suggests the country may not a have a “fair regulator” when it comes to Bitcoin businesses. 

“If no New Zealand bank is playing ball it’s a problem for the Bitcoin economy in NZ – It seems like [anti-competition] to me,” details the Bitnz operator on social media site Reddit. One New Zealand bitcoiner believes it’s also a coincidence the banks in the region are fighting Apple Pay as well.   

Yeah, it’s either sloppy and lazy banking, or outright malicious monopoly driven douchebaggery. Either way, I hope banking as it is right now dies in a fire. Interestingly, the Aussie and Kiwi banks are trying to prevent Apple Pay from gaining traction.  The worst banks can do at the moment is slow adoption. Bitcoin is a better product, and while still dealing with the scaling teething issues, we will overcome these problems.

For now, New Zealand residents will have to search out another exchange such as NZBCX or Instabit to trade Bitcoin.

What do you think about the New Zealand banking problems with Bitcoin companies? Let us know in the comments below.

Images via Shutterstock, and the Bitnz website. 

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  • Biff Hardsteel

    If you can’t beat them ….get your paid cronies in positions of power in the government (that you donated all the money to )… to squash them.

    Lousy Evil fascist communist protectionist BS …
    Thank God USA has president Trump who is Bitcoin supportive.

    • MC Kuky

      Nothing to do with communism. This is capitalism private central banking monopoly. In communism there is no state to control the people (that is state capitalism). You people talking shit and putting wrong labels like “fascist communist” is not helping. Learn some history first, communists were fighting against fascism while capitalist private bakers funded Nazi Germany, a fascist state and few giant capitalist industrialists did business with them (Ford, Bush and few others)

      Did you ever think about why capitalist US made enemy of its ally (Soviet Union) while became allies and good friends with its enemies (Germany, Italy, Finland, Japan, and a few others)? Its because WWII was not about some mad man Hitler wanting to rule the world, it was about capitalists and monarchs funding and using Germany to fight rise of communism as they saw it as a threat to their rule and power. After WWII and to this day, they have been fighting against communism and socialism. That’s the real reason behind WWII… capitalists protecting their interests.

      This is same what this NZ bank (and many others in other nations) is doing to Bitcoin business… they are fighting against something that is not working in their interests, Bitcoin in monetary system is same as communism is in economic system… both are not centralised by some individual power and work in the interest of the people.

      So stop talking shit out of your ass.

      • disco

        This so much. Truman instigated the cold war by unnecessarily dropping nukes on Japan. Had nothing to do with Japan, and everything to do with positioning themselves as the dominate power post-war.

        As for POTUS 45, he’ll be pretty anti-bitcoin the first time someone uses it to threaten something he cares about or makes him look bad. He is not some kind of ideologue, unless it’s for the cult of the almighty Trump.

        • Biff Hardsteel

          Yea.. yawn..

          I like to throw around Commie pinko fag as a slander..
          It like when I call you a M*ther
          F-er.. I actually don’t really think that you have sex with your mother..
          But thanks for the history Lesson by the way my dad was in World War II I got it straight from the factual facts..

          And Trump… he is going to be the greatest president this country has ever seen.
          Pro Bitcoin ? I’ll bet you money.

          • MC Kuky

            So what if your dad was in WWII? Unless he knew personally that what I said has happened, which he hasn’t, he or you could not have a clue what went on before and during… and even post WWII. You dad might have fought in WWII (and so did many other millions of people) but he did so thinking he was fighting for his country, against some bad people, and he had no clue what the people that crated it all wanted, what they did etc, as they are to this day protected by the same system that existed then and still exists now.

            And why the US and British private bankers funded Hitler and his army, and what so many other nations fought with the Nazi Germany is clearly not something your dad paid much attention to, as if he did, he’d be telling you things differently.

            Take a look at 911, such an obvious physical impossibility of events that official story wants us to think is true. 911 official story cannot be true as laws of physics do not support it at all. Yet most people believe it because they trust what their government tells them and they completely dismiss any actual critical thinking from others that have been paying attention, and they don’t think critically themselves at all. Your dad doesn’t question anything from WWII… because he’s a conformist, same as the majority of people, which is why governments and these private bankers were able to get away with mass murder all this time.

            Bitcoin is what it is, these filthy lying fuckers in governments that have been protecting private bankers and capitalists that have been fucking up the world, can’t change it, or control it… which is exactly what’s needed for the world to get rid of their corruptness and mind and economic control.

            Bitcoin to Fiat money in banking system is what Communism is to Capitalism in economic system. Communism is people having control of themselves, not being controlled by the individuals, or the state and Bitcoin is non-centralised banking system, owned by all of the people using it.

          • Biff Hardsteel

            So, your a fan of communism?

          • MC Kuky

            Yes I am. Communism is not state capitalism where state decides and controls and owns every major business. Communism is people that work in the business having control and owning the business themselves.

            This is what Bitcoin is designed to do in financial / banking system, take this control of the currency and money from the individuals and back to people themselves.

            It takes bit of higher conscience on the part of the individual to understand this, and stop thinking in the way both current economic and banking system is designed, by the people that control them.

          • Biff Hardsteel

            Your a fan of Communism.
            You are a idiot.
            If I were a fan of Communism, I’d move to Cuba or Russia..
            Why don’t you move?
            Maybe you don’t have the funds.
            I could buy you a plane ticket, you know, Since I’m a successful capitalist.

          • MC Kuky

            Thank you for saying you are a capitalist. It just shows that only capitalists defend capitalism… because its good for them only.

            FYI, I need to explain to your dumb shitty capitalist head, that even in every capitalist society there iscommunism everywhere, it’s called family business. How? Simple:

            Communism is people that work in a business being included in all making decisions about all aspects of that business. This is what small/family business does. When one person alone or with his family, opens a business, they are the ones that work in that busines and they are the ones that make all decisions, and take all the profits.

            Now, the moment they HIRE someone, they become a capitalist as the person they hire are not included in any decision making, yet they, with their WORK create wealth for the business, which in capitalism creates profits that are ALL taken by the Capitalist.

            This is a rotten system, which has created what you have in your fucked up, shitty, warmongering nation of USA. You want to be proud of capitalism? You are therefore part of the problem.

            And no thanks, I don’t need to move to another nation because you ask me to, I know how the system I live in now, and the one I lived in before, work and what they create… your stupid head doesn’t. Lets see where your capitalism brings you further and how long your nation will last and how it will end. You dumb fucking moron.

          • Biff Hardsteel

            Free market capitalism is the best system there is.
            Show me one place where Socialism or communism has worked to improve the life of citizens. You cannot.

          • MC Kuky

            You are clearly a moron, there is no other way to put it.

            But hey, I’ll prove you wrong: Yugoslavia is one example.

            And I’ll give you another one… Russia. Russians were attacked twice by the capitalist Europe in both world wars, they were under constant pressure and economic restrictions and sanctions by the same shitty capitalist nations… and yet Russia has come out as one of the strongest nations militarily and economically. Clearly you haven’t noticed that Russia is a world power, and even more, while capitalist west needs to go into debt and financially enslave their kids to pay it off, some ow which (including shitty USA) are over 100% of their GDP in debt… and with artificial interest rates… they are STRUGGLING to keep afloat… that boat is about to start sinking… and smart Russians, they are very little in national debt, and REDUCING IT already.

            So shut your stupid mouth as only shit is coming out of it.

          • MC Kuky

            SFR Yugoslavia

            PS: Look at Russia, they were attacked by capitalist west TWICE in both world wars, and they rose out of the ashes and are now superpower both militarily and economically. In case you haven’t found out, Russia’s national debt is tiny and decreasing and US debt and most other capitalist nations are higher and rising… US already more than 100% of its GDP in debt.

            And your stupid ass wants to tell me I am wrong… you dumb capitalism defending shit.

          • Biff Hardsteel

            Y R U not living in Russia then ?
            U definitely should be living in Russia.. You dumb Commy defending Shit

          • Biff Hardsteel

            I love how idiots who believe in the false viability of Communism and Socialism can’t argue merits without resorting to personal attacks and profanity.
            The efforts of a weak & simple mind to express itself.

      • Richard Wiig

        Umm, bitcoin is Capitalism in action, not the heavily regulated banking system. Capitalism is a free market, which the banking system most definitely is not.

        • MC Kuky

          Nope, Capitalism is economic SYSTEM, while Bitcoin (as well as Fiat Money) is a TOOL of PAYMENT (different kind though) used to do trade.

          • Richard Wiig

            Capitalism is more than just economics. It is a socioeconomic system. It is based on the private ownership of the means of production i.e., no central control. Our current banking system is not Capitalist, as it is all centrally controlled and has the hand of government all over it. Bitcoin, on the other hand, is arising in a free market- for now.

            And I fully know what money is.

          • MC Kuky

            Well you are wrong. This is exactly what Capitalists want you to think, that somehow they are creating jobs, not allowing government to centralise things and how they create free market, while in reality (if you bother to watch and properly analyse what is happening all over the world past few decades) it quite the opposite.

            Capitalism is only individuals using their capital to create more capital. In original capitalism individuals would use capital to create products and services, in process hire other people to do work for them, paying them fixed salary (which is always less then wealth they produce with their work) and then selling these products and services for MORE capital FOR THEM.

            If you don’t see this, you are in fact brainwashed.

            This exact thing has past few decades been twisted even more and production of goods and services bypassed completely, and going from capital to just make more capital, which is what CENTRAL BANKS (which are PRIVATE / CAPITALIST ENTITIES AS WELL) have been doing.

            So you, my friend, don’t know shit.

          • Richard Wiig

            I know exactly what Capitalism is. I also know that we are not living in a Capitalist world. We’re living in a Socialist world.

          • MC Kuky

            Clearly you don’t. How you can think that you live in a Socialist world is beyond me.
            Just shows how stupid (you included) people really are.

          • Richard Wiig

            You don’t correct peoples errors by calling them stupid. You just show how you consider yourself to be above everyone else. Pretty much like a socialist elitist mentality.

            Here’s a few things about the society we live in.

            Welfare state: not Capitalist, but Socialist.
            Central planning: not Capitalist, but Socialist.
            Central banking: not Capitalist, but Socialist,
            Progressive taxation: not Capitalist, but Socialist.
            Governments in charge of roads, hospitals, schools: not Capitalist, but Socialist.

            The list goes on and on.

          • MC Kuky

            Calling PRIVATE BANKERS Socialist is just stupid, therefore you are stupid.
            You only got 1 thing correct: Welfare is Socialist policy, and but everything else is not.

            Central banking or planning are nothing to do with Socialist policies, they are in fact STATISM, and have nothing to do with economic policy.

            You are mixing everything up, and you don’t even know the basics.

            Let me explain it to you once again:
            CAPITALism is economic system (production of goods and services) which uses CAPITAL, to create more CAPITAL. That is what Capitalism is, and none of the other things you mention have anything to do with it.

            Socialism comes in place as means of CONTROL by the Government, so that CAPITALISTS do not end up exploiting and rotting the nation by their CAPITALIST means of production… which is exactly what is NEEDED in every Capitalist nation.

            And times have shown that places like USA have been rotting away into shits exactly because the Government did not have and PROPER SOCIALIST POLICIES to keep the Capitalists in check… which is what created offshoring of businesses, tax evasion and what not else… BY THE CAPITALISTS… and if you were any smarter you would see that PRETEND SOCIALISTS like Obama only talk some Socialist shit, to make himself look good and liberal, while in reality all of the shit they claim makes them liberal and what stopid people like you think, makes them Socialist, have in fact nothing to do with Economic system itself.

            People like Obama, all of the so called Democrats in USA and all of their puppets all around the world, are anything but Socialist… and everything to do with HELPING CAPITALISTS GLOBALISTS, which also includes BANKERS, to gate more and more CONTROL OVER THE POPULATION SO THAT THEY CAN EXTORT AND EXPLOIT THE POPULATION OF THE WORLD FOR THEIR ECONOMIC RULE!

            Now fuck off with your retarded explanations, you don’t have a fucking clue what you are talking about… NO WONDER PEOPLE ARE SO EASILY FOOLED.

          • MC Kuky

            I correct your errors and I do call you stupid because you and many other clueless people keep making claims that are simply not correct… and if you keep arguing and defending the very shit of a system that works against the people, you are one dumb mofo.

          • MC Kuky

            Let me correct you in all of your flaws:

            Welfare state: not Capitalist, but Socialist.
            *correct. Socialism is whole society collectively taking care of their own people. Capitalists only take care of themselves. Socialism is whole nation collectively taking care of themselves, much like a family does, and also their environment, which again capitalists don’t care about as they don’t like next to factories or polluted rivers etc… they live in expensive sanctuaries far away from regular people.

            Central planning: not Capitalist, but Socialist.
            *incorrect. Capitalism is one person (the capitalist) making ALL of the decisions. That cannot get more centralized. In fact some capitalists got so wealthy (from exploitation of other people’s work) that they even decide what decision the government makes, which explains why government doesn’t work for the benefit of the people, but for the benefit of the capitalists). Also, as Socialism is not an economic system but a political one, I have to correct you and say that Communism is an economic system which is decentralized (unlike Capitalism, which is centralized) because in Communism workers collectively make decisions.

            Central banking: not Capitalist, but Socialist,
            * Incorrect. Which part from “PRIVATE Central Banks” which is what central banks are, you don’t understand? Bankers are as capitalists, as it can get. Just where do you people get your shit information? Do you know how to think at all?

            Progressive taxation: not Capitalist, but Socialist.
            * correct. And that’s how it should be, so that people who are capitalists, pay their share into taxes, which is meant to be used for the benefit of the whole society, and not hide from taxation in tax heavens. Why do you think millions of people work in their jobs, and they pay fair share of taxes, yet the government which is controlled by the capitalists, takes 1/2 of that money and puts into military and wars, yet they claim how its too expensive to provide education and health care for all. Are you an idiot or what? Looks like you are.

            Governments in charge of roads, hospitals, schools: not Capitalist, but Socialist.
            * correct. And that’s what government is created for in the first place… to run the nation, provide basic services, which includes hispitals, schools, roads, etc… but again… you fail to mention that PRIVATE SECTOR has already infiltrated all of this already and that governments that are controlled by the capitalists are slowly changing and reducing the public (social) sector more and more, why you have private schools, which cost arm and a leg, private health (in USA this is the ONLY health you have, which should put SHAME on American people for allowing their government to do this) and why you have tolls on roads, that are build by PRIVATE (Capitalist) sector.

            So… I have proven to you that you don’t have a clue what you are talking about. Neither Socialism or Communism are centralized in any way, because both systems use collective will of the people, and it is the capitalism that is fully centralized… and banks… for you to call them socialist… is just fucking retarded.

  • Simo Nowinski

    Localbitcoins has plenty of traders

  • sukramko

    You will be back just under different banking reform. Having exchange is NOT brick and mortal store. Its surprising you are unable to find alternative banking system in BVI.

    its only time when bitcoin will be the one closing the doors on banks.

  • Biff Hardsteel

    I Didn’t waste my important time reading your whacko Commie unibomber manifesto.
    TRUMP 2020
    PENCE 2024
    MAGA !!!!

    • MC Kuky

      And that is why you will remain clueless and an uneducated moron all your life.
      You have a baboon for a president… you are the ONLY developed nation, apparently even the most wealthy one, yet you have people dying because they can’t afford a health treatment because your whole system is designed to make rich profit more… and you are proud of it? You are a moron.