Cryptocurrency Policies of US Banks: Impact on Small Businesses

03/13/2023 07:54 • Tech Trends • 120 views

On March 13, Larry Cermak, Research Director of The Block, tweeted that three US banks providing banking services for the cryptocurrency business were eliminated. However, banks such as Customers Bank, First Foundation Bank, Cross River Bank, Sutton Bank, Evolve Bank&Trust, BankProv, and Quintic Bank still provide cryptocurrency banking services. Larry Cermak said that he did not mention big banks such as JPMorgan Chase and Bank of New York Mellon because most small businesses could not use these banks.

Larry Cermak: Customers Bank and other banks still provide services for the encryption industry

Analysis based on this information:

The message highlights that three US banks have stopped providing banking services for cryptocurrency businesses. This decision by the banks disrupted the operations of these businesses as they were unable to sustain their operations without the necessary banking support. The development sends a message that large financial institutions are not yet fully accepting of cryptocurrencies and are yet to establish solid policies around them.

It is evident that small businesses in the cryptocurrency industry are the most affected by such developments as they rely on the small banks for their banking services. The big banks such as JPMorgan Chase and Bank of New York Mellon have not been mentioned as most small businesses cannot afford their services. Hence, small businesses in the cryptocurrency industry tend to rely solely on small banks to provide them with banking services. Having these small banks discontinue their services could massively affect their operations and profitability.

On the other hand, there are still small banks that provide banking services for cryptocurrency businesses. These small banks recognize the potential for growth in the cryptocurrency industry and hence have established policies that allow them to provide banking support to these businesses. As the industry continues to evolve, it is expected that more small banks will join the list of banks providing banking services for cryptocurrency businesses.

In conclusion, the message highlights the need for large financial institutions to establish solid policies around cryptocurrencies to support small businesses in the industry. It is crucial that regulators work closely with these institutions to ensure small businesses have access to the necessary banking services to sustain their operations. It is also essential that small businesses in the cryptocurrency industry identify banks with established policies around the currency to avoid disruptions in their operations due to banking service discontinuations.

Overall, the development serves as a motive for financial institutions to actively steer their policies and services towards the evolving needs of the industry, and this strategy could help maintain balance in both productivity and the longevity of the current crypto industry.

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Cryptocurrency Policies of US Banks: Impact on Small Businesses

Larry Cermak: Customers Bank and other banks still provide services for the encryption industry

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