Cryptocurrency firms are increasingly encountering difficulty when it comes to access banking services due to the recent bankruptcies of companies like FTX and Three Arrows Capital. The liquidation of these firms has led to banks becoming increasingly wary of the crypto market as they fear liquidity and regulatory problems. This fear has seen Cross River Bank receive and reject over 100 applications as they don't want to put their liquidity at risk by taking on too many new customers. Banks like Metropolitan Bank Holding have also been subject to extensive queries after providing accounts to a failed crypto company, prompting them to cease services to these firms entirely. This has been met with criticism from the Blockchain Association who demanded equal treatment for crypto firms. Although some banks remain open to companies in the crypto market, others like JPMorgan Chase and BNY Mellon have started to offer custodial services for crypto assets.
Matthew Mendoza
- 2023-03-31
Banking Woes for Cryptocurrency Firms
Cryptocurrency firms are increasingly encountering difficulties when it comes to accessing banking services. This has led to Cross River Bank receiving and rejecting over 100 applications and Metropolitan Bank Holding ceasing services entirely. Despite this, some banks have started to offer custodial services for crypto assets.
