More than 100 crypto hedge funds report banking hurdles in the past 3 years

Around 120 hedge funds engaged successful crypto reported hurdles successful accessing banking services implicit the 3 years, The Wall Street Journal reported on Dec. 20.

The fig represents astir 75% of 160 hedge funds precocious surveyed by the Alternative Investment Management Association (AIMA).

The survey highlighted that nary of the 20 alternate investors successful different plus classes, including existent property and backstage credit, reported akin challenges. The banking issues ranged from unclear connection to outright termination of relationships.

Among the crypto hedge funds that encountered issues, a small implicit fractional were explicitly informed by banks that their relationships would beryllium terminated.

However, the reasons for these decisions were often vague oregon non-existent. When banks did supply explanations, they cited a tendency to bounds vulnerability to crypto clients oregon the industry.

John D’Agostino, caput of organization income astatine Coinbase and an AIMA committee member, emphasized that portion each affected funds yet recovered banking partners, they were often smaller oregon determination institutions.

Operation Chokepoint 2.0

Crypto manufacture players perpetually sermon the beingness of an effort by the Joe Biden medication called “Operation Chokepoint 2.0,” which allegedly aims to subdue the crypto manufacture successful the US by limiting entree to banking services.

Coinbase main ineligible serviceman Paul Grewal recently released letters from the Federal Deposit Insurance Corporation (FDIC) to banks passim 2022, wherever the fiscal authorization urges the institutions to intermission oregon wholly halt crypto-related activities.

The documents were obtained done a Freedom of Information Act (FOIA) petition filed connected Oct. 18, which sought clarification connected an alleged 15% deposit headdress imposed connected crypto-friendly banks. Grewal stated that the letters were impervious that Operation Chokepoint 2.0 exists.

Custodia Bank CEO Caitlin Long echoed the sentiment, saying the letters were impervious of a coordinated effort to hinder the crypto manufacture successful the US.

Austin Campbell, CEO of planetary integer payments institution WSPN, shared that the AIMA survey further proves that Operation Chokepoint 2.0 is real.

The station More than 100 crypto hedge funds study banking hurdles successful the past 3 years appeared archetypal connected CryptoSlate.