US Fed & Fedic forcing Banks not to provide service to Crypto companies: Report
Reportedly the majority of the US-based banks are facing pressure from the government authorities because they are providing services to the Crypto companies.
Crypto 2022 was not a good year, which was also expected at some level because 2022 was a year after the bull run. In 2022 we saw bankruptcy and the meltdown of many Crypto companies & crypto platforms. The top big fallout of the crypto projects was Terra blockchain & FTX exchange. Terra was in the top 5 of the crypto projects and FTX was second ranked crypto exchange.
The bankruptcy of multi-crypto projects in the market acted as a catalyst to push the regulatory bodies & Government agencies to create new regulation systems to ensure the safety of the Crypto Investors against weak business model-based crypto projects.
Recently Binance-owned popular Crypto news media reported that US authorities are creating very big pressure on Banks to restrict the banking services for Crypto companies and it is visible among the new crypto projects & companies where they’re failing to get Bank support.
If we look at the past, then we will find that the Banking ban on the crypto sector was one of the best traditional tools to fight against the Crypto sector but now US authorities are again using that traditional tool to prohibit the growth of this innovative sector.
Reportedly Nic Carter, the co-founder of venture firm Castle Island and crypto intelligence firm Coin Metrics, said that Federal Reserve & FDIC (Federal Deposit Insurance Corporation) are imposing regulatory pressure on the banks so that they can isolate the banking services away from the non-crypto sector.
According to Carter, regulatory bodies are publicly showing that they are not prohibiting any bank and also all the banks are free to provide custody services to the crypto companies & customers but in reality, these banks are not free because behind the scenes these banks are facing regulatory heat.
Read also: Affirm announces to shut down “auto Bitcoin buy” service for customers
