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Crypto based Firms Still Face Trouble Opening Bank Accounts

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According to reports by Bloomberg of March 3, Most organizations in the crypto industry still face challenges while opening bank accounts. The report includes a complaint by the CEO (Sam Bankman-Fried) of Almeda Research (Quantitative crypto trading company.) The complaint notes that ‘ the standard answer of ‘just go to your local Chase branch’ doesn’t work in crypto’ Bankman further added that banks serving crypto businesses is not illegal, but ‘it’s a massive compliance headache that they don’t want to put the resources in to solve.’

Bloomberg also highlights that, while big banks escape serving crypto related firms, smaller firms are trying hard to get hold of this underserved subset of the market. An example of such a  situation was seen in the report, i.e., Silvergate Bank in San Diego. In the month of November 2018, this bank said that filing for an initial public offering that business related to cryptocurrency have as much as $40 billion to deposit.

Bloomberg further reported that the chief commercial officer (CCO) of BitPay (Sonny Singh), a crypto payment processor with a former chairman of the United States Securities and Exchange Commission as an adviser in one of his statements said that the BitPay had been turned away by many banks. Bloomberg further gave another example of a company (NKB Group – Blockchain investment, trading and advisory firm) which struggled in order to make better banking relationships. The head of NKB’s brokerage commented that ‘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 reported previously, Malta-based blockchain firms are striving with the opening of bank accounts.  However, by the end of February, Julius Baer (Swiss Bank) came out to announce their plans of providing its clients access to digital asset services after collaborating with Seba Crypto (crypto bank startup).

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