75% of Crypto Funds Struggle With Accessing Banking Services
Over the past three years, a worrying trend has emerged among cryptocurrency hedge funds – troubling difficulties in securing banking services.
The issue highlights the broader implications of what many in the cryptocurrency industry are calling “Operation Choke Point 2.0.”
Crypto banking battles fuel debate over industry discrimination
The Wall Street Journal sheds light on this widespread problem, citing a recent survey by the Alternative Investment Management Association (AIMA). this Report Found about 120 out of 160 people Cryptocurrency-focused hedge funds — about 75% of respondents — face barriers to banking services.
In contrast, a survey of 20 alternative investors from industries as diverse as real estate and private credit showed no such difficulties.
Challenges facing the banking industry Cryptocurrency Fund From vague communication to outright account closure, there is often no clear explanation. When reasons are given, they often relate to banks’ reluctance to participate in the volatile cryptocurrency market.
This disparity in access to banking services has given rise to Cryptocurrency executives have serious concerns. Coinbase chief legal officer Paul Grewal questions why a large portion of these funds Having bank problems Their counterparts in other departments did not. The issue suggests that crypto entities may be systematically excluded from banking services.
Meanwhile, Bitwise chief investment officer Matt Hougan expressed relief that these banking challenges are now being discussed more openly. He noted that the crypto community has long been aware of these issues, although public discussion of them often leads to skepticism or outright denial from outsiders.
Hogan described the situation as a form of gaslighting, leading some in the industry to question the legitimacy of their experiences.
“It’s such a relief to see this issue being discussed openly. Everyone in the cryptocurrency space saw this happening in real time, but if you tried to talk about it, people either shrugged or suggested you were making it up. ” Hougan point out.
However, industry stakeholders want this shift President Donald Trump becomes more crypto-friendly Upcoming administration. already, David Sacks, newly appointed AI and cryptocurrency czaremphasizing the need Investigate these restrictive banking practices while acknowledging the damage they have done to crypto-related businesses.
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