Cryptocurrency industry is still facing troubles from banking services, the most popular financial journal Bloomberg covered on March 3.
In the report cited that Robby Houben, a professor, a lawyer, and author, said that “No bank is willing to help them out.” He met so many people in the crypto-related area they wanted to move forward in the crypto field. But, recent crypto scams and money laundering cases, the banks are not ready to give services to cryptocurrency companies.
The complaint from Sam Bankman-Fried, CEO of Alameda Research a crypto trading industry in Berkeley, California, the banks denied giving services to the digital-assets companies. The big banks are saying; go to your home bank for cryptocurrency services. Fried as well added that giving services to the digital-assets industry is not illegal but the banks not ready to face the cryptocurrency compliance headache.
Bloomberg also remarks that, while the big banks stay away from crypto services, smaller banks are trying to acquire this underserved market.
NKB Group and Banking Services
London based crypto investment company NKB Group has much struggled to make banking services, stated Ben Sebley, NKB’s chief of brokerage. The firm’s relationship with digital-assets companies is an overwhelming obstacle, even though so many months detailed discussion with popular banking partners. He also stated:
“Denying basic banking is madness, impedes sector growth and forces companies to get creative to solve the problem.”
BitPay and Banking Services
Bloomberg also cited that Sonny Singh, the main commercial official of BitPay and an earlier chairman of U.S. Securities and Exchange Commission. And also as an adviser stated the company moved away from many banks. Now the all Banks are very much strict on KYC and anti-currency laundering rules. So the banks not adjusted to the cryptocurrency companies.
The bank doors are closing their gates to cryptocurrency companies. Start-ups in the digital-assets area from the East to the West with multi-billion dollars refused by banking services. The banks have so many compliance and headaches from this cryptocurrency field.
Do you think what adoption needed in these companies? Comment your views in the comment section.
