Cryptocurrency Debanking Persists as Banks Adhere to Chokepoint Policies

Banks continue to implement a policy of closing bank accounts for cryptocurrency companies and related individuals, a practice stemming from what’s referred to as “chokepoint policies.” These policies involve regulatory bodies and governments exerting pressure on banks to sever ties with specific industries deemed “high-risk,” even if these industries are operating legally. This creates significant challenges for cryptocurrency businesses in managing their finances, as they find themselves unable to open bank accounts or conduct essential transactions.

Numerous companies and individuals within the cryptocurrency sector have experienced abrupt account closures without prior notice or clear explanation. This raises questions about the transparency and fairness in the application of banking regulations. Furthermore, this action impedes the growth and development of the cryptocurrency industry, as it becomes difficult for new businesses to enter the market and expand their operations.

Advocates for cryptocurrencies emphasize that these policies are discriminatory and unjust, as the cryptocurrency industry is treated differently from other sectors. They are demanding clarification of the laws and regulations pertaining to cryptocurrencies, and ensuring fair and transparent treatment for all companies and individuals in this space. They also advocate for the development of a clear and unified regulatory framework that allows the cryptocurrency industry to grow and thrive safely and in an organized manner.