A senior US banking regulator has revealed in an initial report that major American banks have been refusing to provide services to cryptocurrency and other lawful businesses based on the industry’s nature rather than the actual risks involved. This approach has created unnecessary obstacles within the financial system and contradicts principles of financial inclusion. Cryptocurrency, a digital asset based on blockchain technology, is rapidly gaining popularity worldwide for financial transactions, investments, and other activities. However, its oversight and regulation have posed challenges in various countries. The reluctance of US banks to offer banking services to crypto-related businesses has caused financial difficulties for companies operating in this sector. The report emphasizes that using financial services to weaponize the economic system for political or economic purposes is not only unethical but also harmful to national economic security. The banking regulator has instructed all relevant institutions to eliminate industry-based discrimination in financial service provision and instead assess risks fairly to ensure equal opportunities for legitimate businesses. Experts warn that if this trend continues, it could hinder the growth of the crypto industry and slow innovation within the US financial system. Addressing this issue may improve the availability of financial services and help integrate cryptocurrency within the legal framework. The rapidly growing cryptocurrency sector in the US is being overseen by various organizations to protect consumer rights and maintain financial stability, indicating that US authorities are serious about balancing the interests of the crypto industry and the broader financial sector.
Source: decrypt
