Cryptocurrency companies still can’t open bank accounts

[pawanjain]

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 has been an issue since the beginning of the rise of cryptocurrencies. Since cryptocurrencies are anonymous and had been used for illegal activities and terrorism, banks have strictly restricted people from making any crypto related transactions from their bank accounts. Crypto has been developed over the years and has been adopted by many companies. It has been regulated in many countries now.
Now it depends from country to country where crypto is legalized or regularized and only such countries do not restrict people from making crypto transactions. Only banks from such countries where crypto is not legalized or regularized restrict people from making crypto related transactions.

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[Muzika]

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

First thing that the bank wants to avoid is the act of money laundering, that is the thing they are against with, yes there were lots of companies that are legitimate when it comes in using cryptocurrency but it is still there was no regulation from the central bank to use crpytocurrency sometimes regulations are the only hindrance to this matter.

[Labumi]

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

First thing that the bank wants to avoid is the act of money laundering, that is the thing they are against with, yes there were lots of companies that are legitimate when it comes in using cryptocurrency but it is still there was no regulation from the central bank to use crpytocurrency sometimes regulations are the only hindrance to this matter.

some countries already have regulations on the use of cryptocurrency and many countries have started using cryptocurrency as a currency that is often used for transactions. so that the rules for using cryptocurrency have been circulating.

[el kaka22]

In many countries yes but there are ones that can open bank accounts without a problem at all in some countries.
Look at coinbase for example, it is so bank friendly that you can literally put your credit card there for them to take as much as you want each month, they have a big bank account and I am sure they have many smaller ones spread around as well.

In my country they do not have the right to open a bank account so we are basically living in a period where it is allowed in some countries but illegal in some countries. Our countries exchanges figured out a way that basically states "as long as I pay taxes they will like me" so they went with a route that labels them not as a crypto currency exchange but as a "seller of btc" type thing where they basically consider bitcoin like a product they sell and tax it that way so they pay a ton of taxes.

[SaShiRaJaVu]

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

It is strange to see these sort of restrictions even though the crypto market complies with strict know your customer policies and i am not sure why they could not take that as face value when it comes to dealing with them directly and that too from countries that are crypto friendly, may be it is a combined attack from the banking sector to stifle the market so that their long term business policies will not be effected by restricting the crypto market.

[Barbut]

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

It is strange to see these sort of restrictions even though the crypto market complies with strict know your customer policies and i am not sure why they could not take that as face value when it comes to dealing with them directly and that too from countries that are crypto friendly, may be it is a combined attack from the banking sector to stifle the market so that their long term business policies will not be effected by restricting the crypto market.

Its not like that, this headline should be some cryptocurrency companies still can`t open bank accounts in some banks in some countries. Its not black and white, you have many countries with different laws, with different rules, same for banks. Some are open for blockchain technology, some are closed, why is that so important when we have some big countries are getting into blockchain, when they finish with that all other countries will follow, blockchain will be a global standard.

[Oceat]

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

Well, for some other countries if your source of income is from any related cryptocurrency they will somehow close your bank accounts or forced you to take it all out and transfer to another bank which is i don't know if the same thing would happen to them as the previous one you had.

[ethereumhunter]

It will be no problem if the cryptocurrencies companies cannot open a bank account, and they can use a different way to solve that. But someday, I am sure that the banks will allow this and even the banks will get involved in the cryptocurrency. They will make offers to the companies, and of course, they promise to gives something worth to their customers too.

They are doing like that because they were still afraid of the regulations from the government and the government push them to not accepting cryptocurrency in this time. But the government itself still find out more about crypto, so the chance for cryptocurrency to be accepted by the banks still open.

[dimox]

if government accept bitcoin in that country, i think they can open bank account. because mostly, bank is under government, they built by government. but, there are many bank vilify bitcoin, they look bitcoin as a viral. and actually bitcoiner will make profit for bank, they just dont see that

[Reid]

It might take forever before they will support this kind of crypto related companies.

First of all they will think about the risk of giving them loans. Payment options or payment time might take longer and also there are chances that they may get bankrupt which happens mostly to ICOs now.

One more thing is the trust issues with crypto currencies. Bitcoin had been bashed for too much and FUD's are flowing in social media. So it will always be a no for those who still believes in fiat.

[coinplus]

Banks are not the guilty part here, there is still a lot of discussions about how cryptocurrency related companies are legally run, there are laws in many countries, some countries do not even have laws for crypto to this day and of course banks are not sure how to open bank accounts for crypto companies.

I mean if you are an exchange you get a different company and when you are miner you get different, basically all types of crypto companies out there and it must be really difficult to open bank accounts for all of them looking at the laws and seeing how to react to them. Banks should not be held liable, governments should be, not as major as whole government but just the financial and economic parts of the government who should make it clear for banks to allow them to accept crypto companies.

[gowobonyok]

after all if crypto opens its own bank, it would be quite risky for fiat. if indeed crypto is authorized and establishes its own company, the country's banking system will be disrupted, except if the state gives up crypto replaced. (even though it's 40%)

[kaya11]

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.

Actually in some part of the world, banks like BTC and other crypto currencies. Know why? It doesn't really matter what is it as long as they earned from it. Bitcoin, lands, golds, as long is has value they will tend to do business with it. See, in our country we can receive our trading profits directly to our bank accounts, so if they don't like BTC, they will not surely accept it. Also the time I applied for a bank account they asked me what kind of business do I have, I told them only online stuffs, and guess what did they said, 'bitcoin? and I said yes. They did not further question me about it. That only means they are not against it in fact it's more likely they will earn from us.

[Whosdaddy]

I don't think it will be a problem for too long, I mean it is a contemporary problem that the crypto companies are facing and with more regulations and more laws about crypto passes in countries the more banks will allow them to open accounts. Look at Ukraine for example, they do allow crypto companies to open accounts there, because the laws are settled and they are allowed and everything is drawn out for them.

Look at Cyprus for another instant like there are "gray area" zones there between south and north Cyprus and you can open accounts there with ease. There are places that basically crypto companies can operate with ease and there are some with no rules so its harder to allow them so it will just take time but we will eventually get there and all of them will have bank accounts.

[whirlcoin]

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

the reason will be simple the banks are not supported for cryptocurrencies that's why they don't accept cryptocurrency users to be a part of their development otherwise there is nothing in this because we don't need banks are to be part of this field.

[kodtycoon]

bank are very difficult to accept cryptocurrencies because they already have their own currencies, by the way bank arre very afraid if cryptocurrencies are recognized by the government but well actually bank can also make cryptocurrencies and if that happens then the value of bitcoin will be the most important in exchange all cryptocurrencies

[carter34]

but well actually bank can also make cryptocurrencies and if that happens then the value of bitcoin will be the most important in exchange all cryptocurrencies

Yes there is possibility for this, that banks can develop a coin in their names (after all, I read some thread where celebrities are talking of such creation  ) but I think that can actually be possible afternoon adoption if it can happen.

[shesheboy]

bank are very difficult to accept cryptocurrencies because they already have their own currencies,

what currency do you mean ? fiats or cryptos ?  however both are possible banks have already a fiat and banks can also create thier own cryptos  .

by the way bank are very afraid if cryptocurrencies are recognized by the government but well actually bank can also make cryptocurrencies and if that happens then the value of bitcoin will be the most important in exchange all cryptocurrencies

actually most countries and governments are now already accepting and legalizing the use of cryptos and guess what ? banks are not against them but banks also join the party because cryptos are really beneficial to those who embrace it  . they are all can benefit with it .  but lets face it , some are still scared and doubting to accept crypto's   .

[eaLiTy]

the reason will be simple the banks are not supported for cryptocurrencies that's why they don't accept cryptocurrency users to be a part of their development otherwise there is nothing in this because we don't need banks are to be part of this field.

If you are new to the market and if someone is planning to invest in bitcoin, the common thing anyone would do is to use his bank account to transfer money to any exchanges where he can purchase crypto currency, other than that what option does he have, you can get bitcoin or any coin in the market through two ways, either mine the coin or you purchase the coin and i am not considering any other option simply because working for bitcoin is not an viable option for a causal user who wants to invest in it, so banking relations are important for a sustainable market situation.

[r1a2y3m4]

Cryptocurrency companies still find it hard to open bank accounts for their company because of the reason that cryptocurrency is not accepted by banks. It's like helping somebody to make them better than you. Who in the world will help somebody that will be a mortal enemy in business once that business will be known worldwide?