Bloomberg: Crypto Companies Still Run Into Trouble Opening Bank Accounts

Bloomberg reports that companies in the cryptocurrency industry still have trouble opening bank accounts.

Companies in the cryptocurrency industry still have trouble opening bank accounts, major financial publication Bloomberg reported on March 3.

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 points out that, while the larger banks avoid serving companies involved in crypto, smaller ones are trying to get hold of this underserved subset of the market. Such an example given in the report is Silvergate Bank in San Diego, which reportedly said in a November 2018 filing for an initial public offering that crypto businesses have as much as $40 billion to deposit.

According to Bloomberg, 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 — said that the company has been turned away by many banks.

Blockchain investment, trading and advisory firm NKB Group is another example given by Bloomberg of a company that has struggled to establish banking relationships. 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.”

As Cointelegraph recently reported, blockchain companies in Malta are purportedly 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.

COMMENTS

By Readers$type=blogging$cate=2$count=6

Name

Analysis,498,News,2592,Press Releases,338,Sponsored,137,
ltr
item
CryptoNomus: Bloomberg: Crypto Companies Still Run Into Trouble Opening Bank Accounts
Bloomberg: Crypto Companies Still Run Into Trouble Opening Bank Accounts
https://images.cointelegraph.com/images/528_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdlL3VwbG9hZHMvdmlldy85OWE0OTNiYzMxNGI3NDA2OTMxZTQxMmE1NDJmYWRkOC5qcGc=.jpg
CryptoNomus
https://www.cryptonom.us/2019/03/bloomberg-crypto-companies-still-run.html
https://www.cryptonom.us/
https://www.cryptonom.us/
https://www.cryptonom.us/2019/03/bloomberg-crypto-companies-still-run.html
true
4884201149675661183
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share. STEP 2: Click the link you shared to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy