U.S. banks are reportedly cracking down on retail accounts linked to cryptocurrency platforms like FTX.
Bank just closed and emptied my accounts due to previous FTX wire deposits
If your bank account ever touched FTX, good chance it's getting closed
— Cole (@cole0x) December 15, 2022
According to recent reports from some crypto users, banks such as JPMorgan Chase, Bank of America, and Wells Fargo have begun closely scrutinizing accounts connected to cryptocurrency exchanges and platforms, with some even closing accounts outright.
The move comes amid growing concerns about the potential risks and dangers of cryptocurrencies, including the potential for fraud and money laundering. Many banks have long been wary of cryptocurrencies due to their lack of regulation and the inherent risks associated with them.
Despite the growing interest in cryptocurrencies and the proliferation of platforms like FTX, banks are increasingly wary of the potential risks and are taking steps to protect themselves and their customers. This includes closely scrutinizing accounts linked to cryptocurrency platforms and exchanges, as well as implementing stricter policies and procedures to ensure compliance with anti-money laundering and other regulations.
While the crackdown by banks on retail accounts linked to cryptocurrency platforms like FTX may be seen as a negative development by some, it is ultimately designed to protect both banks and their customers from potential risks and dangers. As such, it is important for those who are interested in cryptocurrencies to be aware of the potential risks and to take steps to protect themselves and their investments.
Following the debacle of FTX, US banks have taken the involvement of citizens with crypto more seriously after several people lost their assets to the FTX fall. Therefore, if you sent or withdrew FIAT currencies using your bank with the FTX exchange, there is a high chance it would get closed, and you would have to request a cheque to get your balance in cash.
The crackdown by banks has caused concern among some in the cryptocurrency community. Many fear that it could hinder the growth and adoption of cryptocurrencies, as it may make it more difficult for individuals to buy and sell cryptocurrencies.
However, it is important to remember that the actions of banks are ultimately designed to protect both themselves and their customers from the potential risks and dangers posed by crypto. The crypto space has suffered many scams, and because of this, banks and other Web2 financial organizations are staunchly against its adoption, although their respective attitudes towards crypto still vary to some degree.
In conclusion, U.S. banks are reportedly cracking down on retail accounts linked to cryptocurrency platforms like FTX due to concerns about the potential risks and dangers of cryptocurrencies. It is therefore important for those who are interested in cryptocurrencies to be aware of the potential risks and to take steps to protect themselves and their investments.