US Banks Step Away from Cryptocurrency Companies Amid Regulatory Crackdown

02/17/2023 07:32 • Metaverse & Beyond • 70 views

It is reported that some banks in the United States are moving away from cryptocurrency companies, because the crackdown by the United States regulatory authorities may separate the digital currency from the real world financial system. After the bankruptcy of FTX last year, regulators expressed concern about the relationship between banks and cryptocurrency customers. The United States Securities and Exchange Commission (SEC) is actively cracking down on the larger players in the industry or reducing their scope of influence. People familiar with the matter said that the move has alerted bankers who are unwilling to deal with customers targeted by the SEC. Now bankers are reassessing all their exposure to encryption, no matter how small. A few small banks in the encryption field are reducing their exposure to the market or completely cutting off their links with the market. Banks that keep a distance from cryptocurrencies are making greater efforts to stay away from this business, close accounts and avoid customers with potential connections to the industry. Without bank cooperation, cryptocurrency companies are difficult to pay employees’ wages, and it is also difficult for customers to deposit or transfer money into digital currency.

People familiar with the matter: Banks are going their separate ways with cryptocurrency under the regulatory crackdown

Interpretation of the news:

The message highlights a trend amongst banks in the United States to distance themselves from the cryptocurrency industry. This move is mainly in response to the crackdown by the regulatory authorities such as the SEC, which has led to concerns that cryptocurrencies may be separated from the real-world financial system. The bankruptcy of FTX last year has also increased concerns about the relationship between banks and cryptocurrency customers.

In light of these developments, some banks are reassessing their exposure to the cryptocurrency market, reducing their exposure or completely cutting off links with it. Even small banks in the encryption field are taking such steps. This move has wider implications as without bank cooperation, it is difficult for cryptocurrency companies to pay their employees’ wages, and customers face challenges in depositing or transferring money into digital currency.

The regulatory crackdown by the SEC has specifically targeted larger players in the industry, leading some bankers to distance themselves from customers targeted by the SEC. Banks that are already keeping some distance from cryptocurrencies are now making even greater efforts to stay away from the business. This could have a significant impact on the cryptocurrency market, which has seen unprecedented growth in recent years.

In conclusion, the message suggests that due to the regulatory crackdown by the SEC, banks in the US are rethinking their approach to the cryptocurrency industry, reducing their exposure or cutting off links altogether. This has wider implications for the industry, as bank cooperation is crucial for cryptocurrency companies to function smoothly.

This article and pictures are from the Internet and do not represent qiAiAi's position. If you infringe, please contact us to delete:https://www.qiaiai.com/metaverse/1223.html

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.