EXPERT OPINION | Regulation May Have Shaped FNB’s Walled Crypto Product

By MoneyBadger

FNB’s entry into cryptocurrency trading marks a significant step towards mainstream adoption in South Africa. However, the bank’s decision to prevent customers from transferring their holdings outside its platform highlights a broader tension in the industry – expanding access to crypto does not necessarily mean giving users control over their assets.

The bank’s Crypto Investing service, developed in partnership with VALR, allows customers to buy and sell Bitcoin, Ethereum, XRP, Solana and Tether’s USDT from as little as R10. Trading is available around the clock through FNB’s existing investment platform bringing digital assets into an application already used by millions of customers.

INSTITUTIONAL | South African Bank, FNB, Partners with VALR to Offer Crypto Trading Through Banking App

The move lowers the barriers to entry for investors who might otherwise be reluctant to open accounts with a cryptocurrency exchange or manage their own digital wallets.

However, customers cannot

• withdraw their holdings to private wallets,
• transfer them to other exchanges,
• receive cryptocurrency from external sources, or
• use the assets to pay merchants.

Their holdings remain within FNB’s ecosystem and can be converted back into rand.