About 120 Hedge funds operating in the digital currency space reported barriers to accessing banking services over three years. The Wall Street Journal It has been reported On December 20.
This figure represents roughly 75 percent of the 160 hedge funds recently surveyed. by the Alternative Investment Management Association (AIMA).
None of the 20 alternative investors in other asset classes, including real estate and private equity, reported similar challenges, the survey found. Banking issues ranged from unclear communications to complete termination of relationships.
Among the crypto hedge funds that ran into trouble, just over half of the banks were told explicitly that their relationship had been severed.
However, the reasons for these decisions were often unclear or non-existent. When banks did provide explanations, they indicated their desire to limit exposure to crypto customers or the industry.
John D'Agostino, head of institutional sales at Coinbase And one AIMA board member emphasized that while all of the affected funds eventually found banking partners, they were often smaller or regional institutions.
Operation Chokepoint 2.0
Crypto industry players are constantly discussing the existence of an attempt by the company Joe Biden The government is calling it “Operation Chokepoint 2.0,” which is said to be cracking down on the crypto industry in the United States by restricting access to banking services.
Chief Legal Officer of Coinbase Paul Grewal Recently Published letters From the Federal Deposit Insurance Corporation (FDIC) to banks throughout 2022, financial authorities will require institutions to freeze or completely stop crypto-related activities.
The documents were obtained through a Freedom of Information Act (FOIA) request filed on October 18, which sought clarification on the 15 percent deposit cap imposed on crypto-friendly banks. Grewal stated that these letters are proof of the existence of Operation Chokepoint 2.0.
Managing Director of Bank Gardhani Caitlin Long It echoed that sentiment, saying the letters were evidence of a concerted effort to curb the cryptocurrency industry in the United States.
Austin Campbell, CEO of WSPN Global Digital Payments; has been shared That AIMA review further proves that Operation Chokepoint 2.0 is real.
