People familiar with the matter: Banks are going their separate ways with cryptocurrency under the regulatory crackdown

It is reported that some banks in the United States are moving away from cryptocurrency companies, because the crackdown by the United States regulatory authorities may separate the digital currency from the real world financial system. After the bankruptcy of FTX last year, regulators expressed concern about the relationship between banks and cryptocurrency customers. The United States Securities and Exchange Commission (SEC) is actively cracking down on the larger players in the industry or reducing their scope of influence. People familiar with the matter said that the move has alerted bankers who are unwilling to deal with customers targeted by the SEC. Now bankers are reassessing all their exposure to encryption, no matter how small. A few small banks in the encryption field are reducing their exposure to the market or completely cutting off their links with the market. Banks that keep a distance from cryptocurrencies are making greater efforts to stay away from this business, close accounts and avoid customers with potential connections to the industry. Without bank cooperation, cryptocurrency companies are difficult to pay employees’ wages, and it is also difficult for customers to deposit or transfer money into digital currency.

Interpretation of this information:

The United States regulatory authorities’ crackdown on cryptocurrency is causing some banks to distance themselves from cryptocurrency companies. After the bankruptcy of FTX, regulators raised concerns about the relationship between banks and cryptocurrency customers. The SEC is targeting larger players in the industry, causing banks to reassess their exposure to encryption, no matter how small. Some small banks in the cryptocurrency field are reducing their exposure to the market or completely cutting ties. Banks that distance themselves from cryptocurrencies are making greater efforts to avoid customers with potential connections to the industry. This distancing is making paying employee wages and depositing or transferring money into digital currency difficult for cryptocurrency companies. The three keyword summaries are: regulatory crackdown, banks distancing, and difficulty for cryptocurrency companies.