Crypto-related companies still face a great deal of problems when they try to open bank accounts, Bloomberg reported yesterday.
Even though crypto firms are able to attract millions of dollars from investment companies and funds, the vast majority of the entrepreneurs in the digital-assets industry are refused by banks when they try to open accounts just because they deal with cryptocurrencies.
For example, Sonny Singh, Chief Commercial Officer of the crypto payment processor BitPay, has said that his company has been rejected by a large number of banks simply because it is related to cryptocurrencies.
However, this massive rejection has become a great opportunity for smaller institutions, which offer their services to the companies rejected by larger banks.
Why it is important
- The banks' rejection to offer crypto companies their services does not have a legal base. Serving these companies would involve a lot of paperwork as well as the obligation to comply with a lot of regulations.
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