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

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. 

What’s the quickest way to see the current bitcoin price in your local currency? Click here for an instant quote.

  • 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.

  • 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.