Cryptocurrency companies still can’t open bank accounts

[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 depends upon region and every region has its own way and regulations according to the clarity of things on how to deal with the cryptocurrency market and if it is in the grey area never expect the banking sector to be open to companies that deals with cryptocurrency, countries with clear rules and regulations might not have a problem opening a bank account.

[1715125886]

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[beerlover]

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 very true. Because of the anonymous nature of cryptocurrencies, people can easily transfer it to settle illegal deals. This is one of the reasons most governments don't want to allow it and as such the central banks will likely continue to kick against it.

That is the worst they can do about cryptocurrency, create FUDS for it, threatening users and many more, but technologically , there is nothing they can do about it as no matter what they do, it will not make satoshi or other blockchian companies close down the blockchian.

I am sure this is one of the reasons why satoshi still would not disclose himself ever so that they will not force him into shutting down the bitcoin system which is why Craig must be careful, because when its gets deeper and government invites him, he will have no excuse to give that he doesn’t have the source code.

[Kimonoe]

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 depends upon region and every region has its own way and regulations according to the clarity of things on how to deal with the cryptocurrency market and if it is in the grey area never expect the banking sector to be open to companies that deals with cryptocurrency, countries with clear rules and regulations might not have a problem opening a bank account.

I agree. this indeed depends on government policies from each region. but usually this will start from developed countries. many developed countries have been able to, while other countries I think are still in the process of following developed countries

[imstillthebest]

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 depends upon region and every region has its own way and regulations according to the clarity of things on how to deal with the cryptocurrency market and if it is in the grey area never expect the banking sector to be open to companies that deals with cryptocurrency, countries with clear rules and regulations might not have a problem opening a bank account.

I agree. this indeed depends on government policies from each region. but usually this will start from developed countries. many developed countries have been able to, while other countries I think are still in the process of following developed countries

A country wont develop with crypto use if their government wont allow cryptocurrency  .  I dont also think that a crypto company cant open a bank account because a bank will accept any kinds of constumer and what if the owner of the crypto company will only use thier names instead of the company name ?  In that way banks will not doubt and wont question the person that will open an account with them  .  Fiats are also the medium that they will be using to deposit on bank not cryptos  .

[wuvdoll]

I think the clearest contradicting statement for this is that Ohio state is accepting bitcoin taxes as it is. Which means there are plenty of banks in USA that literally helps crypto companies and they are capable of opening bank accounts and run a business and they are good enough to pay taxes.

The weird part about the increasing sectors like weed sellers right now who got their green light to be legit and crypto companies pay a lot of taxes because they are recently accepted and they want to pay a lot of taxes to show that government can profit from this and should keep it open, whereas stuff like banks do not pay taxes as much as they should with accounting shadiness because they know they are there. All in all crypto companies pay taxes which means they can open banks, just not globally everywhere in the world but there are plenty of places they can open accounts.

[maxreish]

It's the fact that we should accept. For the banks, cryptocurrency is a complicated thing if they'll gonna accept  it. Though I don't see any problem about it. I considered btc as a digital currency thus, can also save it in our banks rather than in our online wallets. But I've read the link and they have reasonable statements as to why don't they agree yet on opening crypto bank accts. The value of btc now is not a joke. Hence, still building a good reputation in the eyes of the banks.

[GregH37]

Banks aren't willing to play ball unless they are getting a large cut of the action.  Money talks and they aren't going to risk dealing with small companies.  They will take the risk if they are pulling in big profits because then it is worth their time.

right, big companies will also attract big businesses. and I think that has become a formula. besides what you explained, of course banks cannot crash rules, if the government has not legalized cryptocurrency

They are just hypocrites, they cannot crash rules, but they are backing XRP, If they fully don’t see the functions or benefits of cryptocurrency to them, how come they are seriously using x without government regulation or legalization. Governments or banks, none of these two is capable of throwing bitcoin into the trash can as the usage has become too deep and almost beyond control.

Very soon, which we are already having, cryptocurrency banks will become so much that traditional banks will start becoming less useful to the economy and by that time, maybe government will consider crypto when they see the amount of money being generated to their country through the crypto banks.

[omone1]

Banks want to be the major player, as anything that threatens them is an enemy that must be hunted dead or alive. This time, they couldn't deal with the bitcoin, they may build their own system of bitcoin transfer and remittance so as to be collecting commissions, instead of not been part of the overall gain.

[lovesybitz]

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

Do you think most banks or all banks in the entire world they like crypto currency? If there are few banks are connecting or adopting the system of blockchain technology, it is because they saw that someday it will be hard for the bank to defeat it, it is a matter of Decentralization vs. Centralization, I hope you get my point.

[omonuyak]

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 is no currency that is immune to "illicit activities" and it is true that governments will not like the used of bitcoin at this moment and as such will like to demonize it. But time is coming and it is very close now when all this will be a thing of the past and by then bank will start accepting cryptocurrencies account opening.

[creativeleading]

Has anyone heard of Selfkey yet? They'll be releasing a bank accounts marketplace probably this week already. It lets wallet users open a real bank account in many jurisdictions. I hope this goes well though. If it does, this may be the world's fastest application for a bank account.

[carter34]

It's the fact that we should accept. For the banks, cryptocurrency is a complicated thing if they'll gonna accept  it. Though I don't see any problem about it. I considered btc as a digital currency thus, can also save it in our banks rather than in our online wallets. But I've read the link and they have reasonable statements as to why don't they agree yet on opening crypto bank accts. The value of btc now is not a joke. Hence, still building a good reputation in the eyes of the banks.

The crypto bank stuff is an issue really and I think is because of regulation and acceptance that is lacking. I think I read of a project like that on ICO sometime last year, that project is still struggling but is a good project that is waiting to be recognized in the future.

[Chaki #diarize]

Most of us worries why our banks in our country do not allowed you open account wherein you can put your coins for safety.

They had their reason, they had their bank policy and agreement approved and allowed by the government before they are even allowed to operate.
If banks will make their own decision about having "Crypto Coins" on their safe (let say online safe) with out any approval from the government,  their is possibility that it will be close or shut down due to bridging of contract and not allowed to operate anymore.

So we need also to understand them.

That's why we have a lot of applications we can use to link them so we can buy crypto online and withdraw them and turn it into cash, or deposit it to your bank account. (You just have to find a way).

Hope this help.

[Vishnu.Reang]

Here in India, earlier the local exchanges could open bank accounts. But then Raghuram Rajan (the then governor of Reserve Bank of India) prohibited banks from dealing with crypto-exchanges and all such bank accounts were closed down. Even now, none of the cryptocurrency related ventures could open a bank account in India. And even worse, there are no local exchanges remaining in operation.

[The Sceptical Chymist]

Jesus Christ, that article keeps repeating the same thing over and over in order to pad it to whatever length they need.  Makes me want to pull my hair out by the roots.

The "cryptocurrency companies" they mentioned were exchanges and other crypto financial businesses, so that's no surprise that banks want nothing to do with them.  There's too much risk and too much competition.  It does drive me nuts when crypto keeps getting painted with the old brush that it's only used for illicit activities.  Obviously there's some truth to that, but take any $20 bill out of your wallet and you'll probably find traces of cocaine on it--cash has been used for the exact same criminal activities since the government started making paper money (and even before that).

What comforts me is that merchants who can't arrange a bank-based payment processor can always take bitcoin as payment with no issues whatsoever, and it also has the added benefit of semi-anonymity.  I'm not talking about dark market stuff, either.  Try buying kratom with a credit card (I don't advise it, it's just an example) and you'll run into all sorts of problems.  There are many other examples of this, too. 

Banks and crypto don't mix right now.  I'm not sure if I want that to change, to be honest.  The whole point of cryptocurrency is to be bankless.  I think if the banks ever get their grubby little fingers into the crypto pie, it'll ruin the whole thing.

[jostorres]

You do not need approval from any government branch for your individual decision, if governments decide that crypto currency is something legal like a tender than any bank can do it however they are not really feeling safe because of the volatility which is the reason why it is not published everywhere right now.

If government taxes crypto to begin with (like USA) that means its not illegal to use it, look at china, they are not taxing crypto itself (though tax the income miners make but they banned miners so they won't even do that now) and that means you can't really operate a bank in china with crypto involved. USA ones however have taxing so why not put them in and that way people would have easier time to actually store their currencies because it would be near impossible to hack banks.

[shield132]

In reality crypto wasn't created in order to integrate with banks, no, it was created to change that decentralized system and give more freedom to people.
But on another hand can't understanf what's happening, every country's opinion is so different around crypto. In some countries banks try their best to offer crypto services and in some countries it's very hard for banks. To sum up governments must want it to have more control but idk

[Mahanton]

Banks and crypto don't mix right now.  I'm not sure if I want that to change, to be honest.  The whole point of cryptocurrency is to be bankless.  I think if the banks ever get their grubby little fingers into the crypto pie, it'll ruin the whole thing.

Good line and people should really put up on mind on why crypto is being created on the first place just for this sole purpose.-To get rid of banks/3rd parties.
People do love to tie up things which mustn't done. These issues aren't really new and as said this had been discussed and lots of debates/issues towards this.

[adzino]

Ok, one thing I don't understand is why would they need a bank account? If they are using crypto currencies, why would they want to open a bank account? Isn't a wallet equivalent to a bank account? I thought bank accounts were for fiat currencies. I get it, people needs fiat money, but then again  i don't see any valid reason for a bank to deny a company to create an account as long as they follow all the rules and regulation.
Banks and crypto currencies don't go with each other. In fact, crypto currencies were made to get rid of bank accounts and bring financial freedom along with privacy.

[Ayiranorea]

Ok, one thing I don't understand is why would they need a bank account? If they are using crypto currencies, why would they want to open a bank account? Isn't a wallet equivalent to a bank account? I thought bank accounts were for fiat currencies. I get it, people needs fiat money, but then again  i don't see any valid reason for a bank to deny a company to create an account as long as they follow all the rules and regulation.
Banks and crypto currencies don't go with each other. In fact, crypto currencies were made to get rid of bank accounts and bring financial freedom along with privacy.

Your questions were right, but just think in a very simple way. You need to buy Bitcoin for the first time you'll need a bank account which has got your funds and the same account will be connected to the debit/credit cards. Using those you can make the purchase, and you can do it without a bank on direct face to face dealing of fiat provided in hand. When a new exchange is developed or some service related to bitcoin begins it needs bank account to make buying and selling as common people were the users. To this there were more restrictions from the banking industry as crypto industry takes their profits.