In recent years, the phenomenon of debanking has intensified, particularly as traditional banks and payment processors cut off services to crypto companies citing concerns over money laundering and reputational risks. This has forced many businesses within the digital asset space to reconsider their strategies to secure banking access. The Current State of Crypto Business Banking Challenges Across continents, from the US to the EU, crypto businesses face abrupt account closures and rejections when applying for merchant accounts, often without prior warning. The situation stems partly from historical initiatives like the US "Operation Chokepoint," which was originally intended to curb illegal activities but has inadvertently ensnared legitimate crypto businesses. Furthermore, the challenges are compounded by the high demands of compliance with disparate international regulations, making operational continuity a tedious task for these companies. The lack of consistent guidelines for crypto transactions further exacerbates the banking difficulties. Many crypto companies in Europe have encountered similar banking challenges, with a significant percentage unable to maintain stable banking relationships. The fear of potential legal repercussions and financial instability due to market volatility makes banks hesitant to serve these businesses. Exploring Solutions and Workarounds Despite these setbacks, there are still avenues for crypto businesses to gain access to essential financial services. Some electronic money institutions (EMIs) willingly work with crypto firms, providing more stability and opening merchant accounts with reduced risks of sudden terminations. To navigate these challenges, crypto companies increasingly turn to specialized legal and financial consultancies that understand the crypto market's nuances. One such firm, Inteliumlaw , offers expert advice and has a network of payment providers that cater specifically to the needs of the crypto industry. Their expertise in digital assets helps in significantly lowering the instances of debanking. Securing a reliable banking partner can be a complex and lengthy process for a crypto business, unlike traditional IT startups where setting up banking services can be straightforward. Professional guidance is often essential to successfully navigate the regulatory and operational hurdles. Disclaimer: This is a sponsored article and is for informational purposes only. It does not reflect the views of Bitzo, nor is it intended to be used as legal, tax, investment, or financial advice.
