Banks make it difficult for crypto companies.
Bloomberg's main financial publication reported on March 3 that companies in the cryptocurrency industry still have problems opening bank accounts. The report cited complaints from Sam Bankman-Fried, CEO of the quantitative crypto trading company Alameda Research, who said that the standard answer from the statement "just open a bank account in a local branch" was meaningless in the crypto industry. Bankman-Fried also added that it was not illegal for banks to serve the crypto business but the bank made it difficult to not help. Bloomberg also shows that if large banks avoid serving companies related to crypto, small banks actually try to get a share of the market that is reluctant to be served by these big banks.
An example given in the report is Silvergate Bank in San Diego, which reportedly said in a November 2018 initial public offering that the crypto business had $ 40 billion to be paid. According to Bloomberg, Sonny Singh, a chief commercial officer of BitPay, a crypto payment processor and former chairman of the Securities Commission and adviser to the US Stock Exchange, said that his company had been rejected by many banks. Blockchain investment, trading and advisory companies, the NKB Group is another example provided by Bloomberg about companies struggling to build banking relationships. Ben Sebley, NKB broker, reportedly commented:
"Refusing basic banking is something crazy, hampering sector growth and forcing companies to look for other ways to solve problems. Banks are too cautious. "As reported by Cointelegraph, blockchain companies in Malta are also struggling to open bank accounts. However, at the end of February, Swiss Bank Julius Baer announced plans to provide customers with access to digital asset services, followed by a partnership with crypto bank startup, Seba Crypto.