Crypto Companies Are Having Hard Time Opening Bank Accounts.
On March 3, major financial publication Bloomberg reported, that Companies in the Cryptocurrency industry still have trouble opening bank accounts.
The report cites the complaint of Sam Bankman-Fried, CEO of quantitative crypto trading company Alameda Research, that “the standard answer of ‘just go to your local Chase branch’ doesn’t work in crypto.” Bankman-Fried also added that it is not illegal for banks to serve crypto businesses, but “it’s a massive compliance headache that they don’t want to put the resources in to solve.’’
Bloomberg also mentioned, Crypto companies are having hard time because the larger banks avoid serving companies involved in crypto, while the smaller ones are trying to get hold of this underserved subset of the market. Silvergate Bank in San Diego was mentioned as an example, which reportedly said in a November 2018 filing for an initial public offering that crypto businesses have as much as $40 billion to deposit.
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The company has been turned away by many banks, mentioned by Sonny Singh — chief commercial officer of BitPay, a crypto payment processor with a former chairman of the United States Securities and Exchange Commission as an adviser.
One of those companies which is struggling to establish banking relationships is trading and advisory firm NKB Group. Ben Sebley, NKB’s head of brokerage, reportedly 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.”
There are other blockchain companies In Malta are also struggling with opening bank accounts.
Still, at the end of February, Swiss bank Julius Baer announced plans to provide its client access to digital asset services, following a partnership with crypto bank startup Seba Crypto. Follow us on https://t.me/cryptosignalalert and be the part of leading Crypto Group.