Cryptocurrency companies still can’t open bank accounts

[avikz]

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

Your article is just another way of looking at the same news below. Check the link,

https://www.dcforecasts.com/jpmorgan-is-blacklisting-crypto-firms-refusing-to-open-checking-accounts/amp/

While I can't deny that cryptos are easier to use in money laundering and other illegal activities, but how can a Bank refuse to provide its service to a company with no previous history? The reason given in this case, sounds like a simple eye wash while the main reason is maintaining supremacy and misuse of power. JPM should be sued for creating such nuisance!

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[1Referee]

It doesn't surprise me one single bit. It's unethical to reject customers, but then again, it's their platform and they can accept/reject any entity at any time. Complaining usually won't do much unless all rejected crypto entities pool their efforts and take it to the court, but even that could still turn out to be a waste of time and money.

What we don't read about is that a lot of exchanges have had to deal with banks just not wanting to cooperate with them anymore, and in order to move their funds, a % fee has to be paid, which is a form of extortion if you think about it. If this happens frequently, which Bitfinex has had to deal with, it's not out of the ordinary to lose 5-10% of your total fiat balance due to the absurd fees.

[Vaskiy]

Through fiat illicit activities, money laundering and other form of crime related activities were taking place. What's happening with the use of bitcoin is comparatively very low and this is the way to degrade cryptocurrency. Banks fear growth of cryptocurrency and to eliminate its usage this is the only way without which they were unable to stop its progress on all aspects.

[dothebeats]

Seeing how vague cryptocurrency regulations are on some parts of the world, I can see this happening within a mile. Those crypto services that got lucky into securing a bank account and getting financial services for their companies are situated within regions wherein the idea of cryptocurrencies are not frowned upon. If cryptocurrencies gain full support from governments, I am quite sure that banks would follow where the money is. They are just scared of getting screwed up by hacks and loss of profit that's why they aren't taking a bite on cryptocurrency services just yet.

[davis196]

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

Why it's so improtant for crypto companies to open bank accounts?Can't they just use crowdfunding platforms or offshore bank accounts?Weren't ICO invented as a crowdfunding tool to avoid banks?I know that ICOs suck,but there must be a way to fund cryptocompanies without using banks.

[Kakmakr]

It only take one or two Banks to come forward and to say, "bugger the rest of these Banks, we support Crypto currency users." It is new start-up Banks with a lower client base, that will have to start this, because the bigger Banks have little to gain by supporting this.

The bigger Banks will suddenly see Crypto currency clients, closing their accounts voluntarily and moving to Banks that supports Crypto currencies. The bigger Banks will lose market share and they will be forced to change their agenda. <Remember, Bitcoiners have friends and family with accounts at these Banks and they can also change Banks>

The other thing that can be done to stop this is to report them for anti-competitive business practices. <Let the courts deal with them>

[mindrust]

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.

Afraid of money laundering?

That's a smooth way to say, "They don't want competition."

Deutsche and Citi are laundering Russian money:
https://www.businessinsider.com/expos-on-russian-money-laundering-operation-entangles-banks-2019-3?utm_source=reddit.com

[orions.belt19]

Seeing how vague cryptocurrency regulations are on some parts of the world, I can see this happening within a mile. Those crypto services that got lucky into securing a bank account and getting financial services for their companies are situated within regions wherein the idea of cryptocurrencies are not frowned upon. If cryptocurrencies gain full support from governments, I am quite sure that banks would follow where the money is. They are just scared of getting screwed up by hacks and loss of profit that's why they aren't taking a bite on cryptocurrency services just yet.

I'd have to agree with you mate. Just check out what has been said in the article:

Alameda Research CEO Sam Bankman-Fried told Bloomberg that banks would rather deny banking services to cryptocurrency companies as they do not want to get involve in cryptocurrency-related compliance issues.

With how messy the regulations are in relation to crypto, banks have decided to steer clear from the hassle of compliance that comes with crypto. Since that crypto is not yet fully supported by the government, they may encounter problems with authorities. A bank would of course go with wherever there is money and profit. Even while crypto has been gaining revenue, they won't take that risk.

[Stavri]

cryptocurrencies are based on blockchain. blockchain provides anonymous transactions. that is why some people prefer to use cryptocurrencies for money transfer instead of using bank accounts. so what is the meaning of blaming people not to open bank accounts?

[boled]

cryptocurrencies are based on blockchain. blockchain provides anonymous transactions. that is why some people prefer to use cryptocurrencies for money transfer instead of using bank accounts. so what is the meaning of blaming people not to open bank accounts?

this makes sense, I agree with you, and the bank is the reason blockchain and bitcoin were created, avoiding large fees and overcoming money transfer systems that are considered too many procedures. so actually we don't need a bank account for crypto transactions. but not now, because crypto has not yet been used as a payment tool.
and I don't blame those who don't have bank accounts.

[incomefromcoins]

Recent cryptocurrency companies are facing blocking of bank accounts this is because bitcoin adoption is big concern for banks further growth fear banks in large

[D3m1r4wanti]

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.

I also think that this is very unfair, because they continue to disgrace the cryptocurrency currency as a currency that is very easy to be used for crime transactions and so on even though in FIAT currencies (in banking transactions) crime is very much happening.

[adamlillian]

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

There are several conspiracy theories that businesses in crypto markets are created to launder money and fight government taxes. because their assets have been kept on some wallets and they can use that money to invest and develop without converting fiat money.
This is also a great advantage for crypto businesses and also why many ICO projects appear every day.

[semobo]

I don't know why a crypto company need to open a bank account,they can transac crypto currencies for their purpose.

As a individual you can use and convert the cryptos into fiat if there is in need.

[mu_enrico]

I don't know why a crypto company need to open a bank account,they can transac crypto currencies for their purpose.

Well, they still need to pay taxes in fiat, and you should know that at the moment not many businesses and shops accept cryptocurrencies.

However, I'm still optimistic that crypto businesses will be able to do AML/KYC properly and become legal in the near future.

[goaldigger]

Banks surely needs a ton of information in order for a person or a business to open an account or just a simple transaction. Cryptocurrency's anonimity in nature are contradictory to this one. Its hard to be anonymous if you need to give it on some organizations for the security of your investors. Theres a lot of factors to think and it should be think wisely.

[Wilhelm]

The banking business has a monopoly on generating money out of thin air.
They are afraid of Bitcoin because they can no longer generate money and create loans based on liquidiy.
The blockchain will force them to be accountable. No wonder they don't want anything to do with it.

Just watch the youtube video "The biggest scam in the history of mankind" and you will understand what I mean.

[danherbias07]

Yes. They are sticked with the government so they will always have to comply with the rules.
If they let it happen and got caught then they might lose their company or they will lose trust from their clients.

That is why ICO is in demand. They cannot get the funds needed from banks or any support from their own government so they will risk it by trying to get help from the people.
Lucky if a rich one supports them.

[qwertyup23]

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 actually true. I know someone who has like 50+ bitcoins and he cannot transfer his funds from the US to the Philippines since the bank questioned the origin of the said money. Every month, he can only convert and transfer around $3,000-$4,000 and he visits the US in order to clear his name and explain his situation.

Banks surely needs a ton of information in order for a person or a business to open an account or just a simple transaction. Cryptocurrency's anonimity in nature are contradictory to this one. Its hard to be anonymous if you need to give it on some organizations for the security of your investors. Theres a lot of factors to think and it should be think wisely.

Coming from the bank's perspective, anyone may claim that they received the money in cryptocurrency profit which makes it questionable due to its anonymity factor. Maybe this is the barrier that must be resolved in the future to prevent these things from happening.

[kyucryp]

crypto currencies and banking systems are different so if we want to open an account for crypto currencies, then there must be a banking company that specializes in handling crypto currencies. becoming a crypto currency has a banking system that is separate from fiat currency banking. and so far, crypto currency has only been used as a trading commodity, it is not used to transact so that to save digital assets, we can use the existing online wallet system.