Crypto’s debanking problem persists despite new regulations

Key Points

  • Crypto firms worldwide continue to face debanking issues despite regulatory changes aimed at easing access to banking services.
  • In the U.S., legislative efforts have repealed guidelines that previously hindered banks from engaging with crypto, yet debanking persists.
  • Australia's Labor Party has introduced a bill to create a legal framework for crypto, aiming to provide clarity for banks to interact with the industry.
  • In Canada, debanking remains a significant challenge with no immediate legislative relief in sight due to the political climate.
  • Critics argue that the crypto industry might be using the debanking issue to deflect from regulatory scrutiny.

Summary

The crypto industry continues to grapple with the issue of debanking, where financial institutions refuse service to crypto firms due to perceived risks, despite recent regulatory efforts aimed at easing these constraints. In the U.S., legislative changes have been made to remove barriers for banks to engage with crypto, but industry observers like Caitlin Long from Custodia Bank believe that debanking will persist into 2026 due to ongoing regulatory scrutiny. Australia's Labor Party has proposed new laws to provide a clear legal framework for crypto, hoping to encourage banks to re-engage with compliant crypto businesses. However, in Canada, the problem remains unresolved with no immediate legislative solutions, influenced by the political stance of Prime Minister Mark Carney. Critics like Molly White argue that the crypto industry might be exaggerating the debanking issue to avoid regulatory oversight. Meanwhile, crypto firms are exploring alternatives like stablecoins and partnerships with smaller banks or trust companies to manage their finances, indicating a potential shift towards more integrated relationships with traditional finance.

cointelegraph
April 15, 2025
Crypto
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