Cryptocurrency companies still can’t open bank accounts

[Unblock_news]

Despite the increasing legitimate cryptocurrency uses, its continued association with illicit activities and anti-money laundering compliance costs makes banking for cryptocurrency companies hard.

Read more here: https://www.unblock.news/news/cryptocurrency-companies-cant-open-bank-accounts

[Canoppo99]

Actually bank don't really like bitcoin, for cryptocurrency companies open bank accounts is a big deal. But there are  some bank in netherland called Bunq and ING that open cryptocurrency businesses, while in germany atleast there are three banks that good for cryptocurrency companies which called VPE bank, Fidor bank and commerzbank. Although most of banks are not ready to deal with unregulated currencies but when many people use cryptocurrency then those bank will adapt with that condition.

[Naida_BR]

Despite the fact that they see the cryptocurrency industry as an enemy to their system and they don't want to help it cultivate, they are afraid of Money Laundering. If they allow to crypto companies to open bank accounts freely then there will be a problem as companies may have a different rssidential location from the location of the bank account that they are going to open.

[manfredmann]

Well probably it is because that cryptocurrency are too complicated for the bank to handle. As we all know that crypto (decentralized) and  fiat money (centralized) are very opposite. This is where the conflict will going to start so it will be redundant to use crypto and afterwards converted into fiat and vice versa. This will only double the transaction fee if crypto will be processed like this.

[daarul50]

The bank did not want to cooperate with the cryptocurrency company but they were only worried because there might be no legal regulations in the bank's country related to the use of cryptocurrency so they refused various cryptocurrency companies to open bank accounts.

[aleandromagno]

Despite the increasing legitimate cryptocurrency uses, its continued association with illicit activities and anti-money laundering compliance costs makes banking for cryptocurrency companies hard.

Read more here: https://www.unblock.news/news/cryptocurrency-companies-cant-open-bank-accounts

Unfortunately, or maybe thats good, cryptocurrencies are a direct competition for banks. Of course they will not help in the development of their competition. They will always makes problems, but it is not everywhere. In Germany, some banks are friendly to cryptocurrencies, one bank (I do not remember the name) even announced with proud cooperation with Kraken exchange.

[crzy]

Despite the increasing legitimate cryptocurrency uses, its continued association with illicit activities and anti-money laundering compliance costs makes banking for cryptocurrency companies hard.

Read more here: https://www.unblock.news/news/cryptocurrency-companies-cant-open-bank-accounts

This is still a red flag because no formal regulations coming from a financial institution so the AMLA should keep this market unacceptable. If you don’t want to freeze your money, then better not to put too much money on your banks or else you will regret it.

[Ranly123]

Despite the increasing legitimate cryptocurrency uses, its continued association with illicit activities and anti-money laundering compliance costs makes banking for cryptocurrency companies hard.

Read more here: https://www.unblock.news/news/cryptocurrency-companies-cant-open-bank-accounts

It's basic, banks do not want cryptocurrency to invade them since it's nature is very volatile and the profitability is uncertain. Banks can't risk it all for just a trend. Accepting crypto in their institutions needs thorough studies to be complied.

[virendarnagpal]

The sad part of crypto is that  it is taken as an investment and no one can deposit one's investments  with the bank.  bank's are supposed to accept deposits in currency.
if we blame bank's only it will be partial and unjustified. 

[markdario112616]

The sad part of crypto is that  it is taken as an investment and no one can deposit one's investments  with the bank.  bank's are supposed to accept deposits in currency.
if we blame bank's only it will be partial and unjustified.  

I disagree, Banks couldn't take Cryptocurrency as an investment. The nature of the Bank and nature of Crypto is quite different at every aspect, both have different system and ways.

It's basic, banks do not want cryptocurrency to invade them since it's nature is very volatile and the profitability is uncertain. Banks can't risk it all for just a trend.

This can be a factor. Since that the industry is much more volatile than any other investment. In addition, Cryptos might be known already worldwide, however, It's not legally acceptable to some countries. This is also being considered by the these Banks, as they don't want to have commit any violations under the laws of it's jurisdiction.

[MakeMoneyBtc]

This is not the first time we see banks not having problems with cryptocurrencies. There are multiple complains on this forum about different banks blocking clients accounts because their transactions were involved with cryptocurrencies

[angel55]

This will balance out, the banks that are willing to accept crypto businesses will end up making more money while the other banks are sitting on the sidelines.  Eventually all the banks will want to bring in these extra profits.

[MakeMoneyBtc]

This will balance out, the banks that are willing to accept crypto businesses will end up making more money while the other banks are sitting on the sidelines.  Eventually all the banks will want to bring in these extra profits.

Banks work on a different system then blockchain so they are probably never going to accept crypto businesses, or at least they are not going to accept crypto transactions within their system. A business cannot work only on bitcoin since right now there is not much you can do with it and eventually they will have to exchange it with fiat for different purposes(taxes, merchandise, shipping, etc.) so even if banks would accept a contract with a crypto business the transactions between bank and the business will be made with fiat.

[gantez]

Maybe at the moment, banks are not seeing the possibility for that because most companies have not started using cryptocurrency as payment to staff but in the future, it is going to happen that banks will marry crypto into their system because of general acceptance and crypto transaction. Bank is a financial institution and they need customers to patronize them too.

[Shenzou]

Despite the increasing legitimate cryptocurrency uses, its continued association with illicit activities and anti-money laundering compliance costs makes banking for cryptocurrency companies hard.

Read more here: https://www.unblock.news/news/cryptocurrency-companies-cant-open-bank-accounts

Banks and probably many government are still considering cryptocurrency as a bad thing and something used for shady things like on the black market gambling and most importantly like you said money laundering, and i think that anyone who us associated with cryptocurrency should not even consider making a bank account in a country where it is not accepted, as it will bring them a lot of problem because their income is unpredictable, and are not people who work in the cryptocurrency industry should not trust banks because the defy every concept of the cryptocurrency.

[Chikitita2004]

I don't understand why would cryptocurrency companies would want to put their holdings in banks when they can also store them in their digital wallets? The fact that cryptocurrency is decentralized how could they expect bank to cooperate with them since banks are so tight in with every client who would want their back.

[boled]

very unfair if the bank accuses this of being related to illicit activities as criminals have exploited the technology’s ability to obscure parties involve in a transaction and to operate outside the regulated financial system. because in my opinion, the crime is everywhere, including in the banking world. customer data sales, fictitious transactions, money laundering, and much more.

[LeGaulois]

The main problem is cryptocurrencies are still not correctly considered and so regulated. Some countries still don't know if it should be considered assets, currencies, illegal,... Banks won't help you to run a business (by providing you a bank account) to run an illegal business. They got too much problem already, they do care a lot more now.

Companies won't have such problem once cryptocurrencies are more well-know

[Mometaskers]

Exchanges do transact with banks so they did managed to set up accounts there. There seem to still be the stigma with it though. For example my bank has slapped a fee on all cash-outs where before they are usually waived and disabled their cash-in service. Considering this is the largest bank in my country, it did affect many bitcoin enthusiasts in my country.

[sunsilk]

I don't understand why would cryptocurrency companies would want to put their holdings in banks when they can also store them in their digital wallets?

It's a basic requirement to comply to the gov't that they can sustain their business as exchange along with the funds on the bank. It's more of a back up and show up that they aren't just going to operate and will take profit through the fees as they operate.

That's going to be one of their foundation to become legit but if these banks won't allow to happen, most crypto companies will struggle to prove that they have enough or back up fund to operate the cost. Banks really don't like crypto's.