Challenges Faces by Crypto Companies in Opening a Bank Account

Challenges Faces by Crypto Companies in Opening a Bank Account
Challenges Faces by Crypto Companies in Opening a Bank Account

One of the most important financial problems of the companies active in the field of cryptocurrencies is their inability to open a bank account. One significant aspect which causes complaints is the lack of any legal inhibition for the banks to open an account for them. It seems that big and reputable banks are not interested in participating in cryptocurrencies activities. Hence, they will not face themselves with the discussions and flows of cryptocurrencies. This disinterest in cooperation with cryptocurrency companies doesn’t follow any specific rational and legal reason.

Different Banks’ Approach to Cryptocurrency Companies

Although big companies wouldn’t like to cooperate with cryptocurrency companies, there are still smaller banks which would rather cooperate with active companies in the field of cryptocurrencies. For example, the small bank Silvergate in San Diego supports cryptocurrencies and has announced in November 2018 that active businesses in this field have depositing capacity up to $ 4 billion.
There are different businesses which have problems in banking and financial affairs. For example, Bitpay company which is working in the field of a cryptocurrencies payment operation, claims that many banks avoid cooperating with them. There has not been complete readiness to accept cryptocurrencies as effective factors in the world of digital business yet since Bitpay is not the only company not succeeded in using financial services. Trading and advisory firm NKB is among active companies in the field of cryptocurrencies which have frequently encountered request rejections from different banks.

The Future of Cryptocurrency Use in Banking Services

Cryptocurrency businesses will surely design techniques to meet their needs to use financial services. At the end of February 2019, Swiss bank announced that it will offer some programs for the customers to gain access to digital assets services. These services will be carried out with the help of cryptocurrency banking startup called Seba Crypto.
The banks’ fear of opening account for cryptocurrency companies is rooted in their lack of knowledge about the nature of activities in this area. For many banks, there is ambiguity in the meaning of Bitcoin and in the news about its volatilities. Different European countries still avoid offering banking services to cryptocurrency companies despite accepting their activity. For instance, countries such as France, Germany, Netherland, Estonia, etc. slightly procrastinate in the opening bank account for the cryptocurrency companies in spite of welcoming the world of cryptocurrencies. However, they have been more active in cooperating with cryptocurrency companies compared to the other parts of Europe. The major worry of these banks is their likely illicit activities such as money laundering and the like. Although the related businesses to cryptocurrencies hinder the negative effect of inability in opening an account through their technical creativity, opening a bank account is still a necessity of for common activities like paying the staff salary or tax.