Banks Do Not Open Accounts For Crypto Companies – Bloomberg
Despite the growing popularity of digital assets, crypto companies continue to experience difficulties with opening bank accounts, Bloomberg reports.
Bloomberg analysts conducted a survey among the managers at crypto companies and presented their opinions. In particular, Sam Bankman-Fried, executive director of the crypto trading company Alameda Research, stated it is not possible for crypto companies to simply open an account in a local bank.
According to the businessman, banking institutions mostly do not have a direct prohibition on working with crypto companies, but this is a “massive headache” for them, and no one wants to experience it.
Small banks have begun to occupy a financial niche the large banking institutions do not want to. They seek to consolidate their position in this market segment. Bloomberg cites Silvergate Bank from San Diego as an example. Its management offered crypto companies to open accounts and make deposits of up to $40 million in 2018.
Another instance is associated with NKB Group, an investment, trading, and consulting blockchain company, which seeks to cooperate with banks. Ben Sebley, the head of the brokerage department of the company, stated that banks ignoring crypto companies can be called insanity, their actions impede the growth of the crypto market. Company executives have to deal with the problem, while banks are overly cautious.
As previously reported, the commercial Signature Bank from New York will provide banking services to startups in the crypto and blockchain sphere in Bermuda.