The Impact of Bank Closures on Cryptocurrency Business

03/13/2023 07:54 • Crypto & Markets • 59 views

On March 13, Larry Cermak, Research Director of The Block, tweeted that three US banks providing banking services for the cryptocurrency business were eliminated. However, banks such as Customers Bank, First Foundation Bank, Cross River Bank, Sutton Bank, Evolve Bank&Trust, BankProv, and Quintic Bank still provide cryptocurrency banking services. Larry Cermak said that he did not mention big banks such as JPMorgan Chase and Bank of New York Mellon because most small businesses could not use these banks.

Larry Cermak: Customers Bank and other banks still provide services for the encryption industry

Analysis based on this information:

In recent years, the cryptocurrency market has gained significant traction as more businesses and institutions have explored the potential benefits of this digital asset. However, despite the growing interest in cryptocurrencies, accessing banking services remains a significant challenge. The banking industry has shown a reluctance to provide services to cryptocurrency businesses due to the high volatility and regulatory uncertainties associated with cryptocurrencies. Moreover, recent bank closures have made it even more difficult for cryptocurrency businesses to access banking services.

On March 13, Larry Cermak, Research Director of The Block, issued a tweet saying that three US banks providing banking services for the cryptocurrency business had been eliminated. This development has caused concerns among the cryptocurrency community as many businesses rely on these banks to facilitate their operations. While some banks such as Customers Bank, First Foundation Bank, Cross River Bank, Sutton Bank, Evolve Bank&Trust, BankProv, and Quintic Bank have continued to provide cryptocurrency banking services, the closure of three banks has highlighted the fragility of the cryptocurrency banking ecosystem.

However, it is important to note that the impact of the closures may not be as significant as expected. According to Larry Cermak, the big banks like JPMorgan Chase and Bank of New York Mellon were not mentioned as most small businesses could not utilize these banks. In other words, the closures only affect a small percentage of cryptocurrency businesses that used the closed banks. Moreover, the remaining banks that offer cryptocurrency banking services can provide an alternative for businesses affected by the closures.

Nonetheless, the closures highlight the need for greater regulatory clarity and support from the banking industry to facilitate the growth of the cryptocurrency market. The lack of access to banking services makes it difficult for businesses to operate, create value, and contribute to the development of the industry. Therefore, policymakers and the banking industry should work together to address these challenges and provide a supportive environment for cryptocurrency businesses.

In conclusion, the recent bank closures have highlighted the challenges that cryptocurrency businesses face in accessing banking services. While the closures may not have a significant impact on the overall market, they serve as a reminder of the fragility of the cryptocurrency banking ecosystem. The industry must work towards creating a supportive environment that facilitates the growth and development of cryptocurrency businesses.

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The Impact of Bank Closures on Cryptocurrency Business

Larry Cermak: Customers Bank and other banks still provide services for the encryption industry

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