Crypto-related companies are still having a hard time opening bank accounts according to a Bloomberg report that we are looking into in our crypto news below.
The report cites a complaint of the CEO of a crypto trading company Alameda Research, Sam Bankman-Fried which says that ‘’the standard answer of just going to your local Chase branch’’ doesn’t really work in the crypto world. Bankman-Fried also pointed out that it’s not illegal for banks to provide services for crypto business but they have a ton of work and a lot of compliance issues that they don’t want to get into.
Bloomberg also made clear that the larger banks avoid providing services to crypto companies no matter their size because the smaller ones usually need to get hold of this part of the market. An example of this is Silvergate Bank in San Diego which stated that last year in November after filed for an ICO that crypto business needs to deposit as much as $40 billion.
The Chief Commercial Officer at BitPay, Sonny Singh, said that the company was turned down many times by many different banks.
The NKB Group, a trading and blockchain investment firm is another example which shows a company struggling to establish banking relationships. The head of brokerage at NKB Ben Sebley commented:
“Denying basic banking is madness, impedes sector growth and forces companies to get creative to solve the problem […] The banks are being overly prudent.”
As DC Forecasts previously reported, companies in Malta are also struggling to open bank accounts on the island. However, the Swiss Bank Julius Baer announced their plans to start providing its clients some digital asset services after they partnered with a crypto bank startup Seba Crypto.
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