"From refusing to bank crypto trading desks to closing accounts held by platforms, the mainstream financial sector appears to be putting up roadblocks to seamless cryptocurrency commerce. Without banking support, exchanges are often forced to depend on other fiat on-ramps to service the deposit and withdrawal needs of their customers.
The apparent discrimination against crypto exchanges also goes beyond the refusal of banking services. In countries such as South Korea, banks have increased the level of scrutiny involved in renewing operating licenses for platforms. The cost of compliance for these added regulatory provisions has led to several smaller-sized exchanges exiting the country.
These crypto-phobic practices by banks often draw from arguments that cryptocurrencies are a conduit for illegal activities. However, actual investigative data from several sources show that there is hardly any truth to the claim that crypto promotes money laundering and terrorist financing."
The apparent discrimination against crypto exchanges also goes beyond the refusal of banking services. In countries such as South Korea, banks have increased the level of scrutiny involved in renewing operating licenses for platforms. The cost of compliance for these added regulatory provisions has led to several smaller-sized exchanges exiting the country.
These crypto-phobic practices by banks often draw from arguments that cryptocurrencies are a conduit for illegal activities. However, actual investigative data from several sources show that there is hardly any truth to the claim that crypto promotes money laundering and terrorist financing."