Around 120 Over the past three years, hedge funds involved in crypto have reported difficulties in accessing bank services. The Wall Street Journal reported On Dec. 20,
This number is approximately 75% of the 160 hedge funds surveyed recently Alternative Investment Management Association
In the survey, none of 20 alternative investors, whether they were in real estate or private credit, had reported experiencing similar issues. These issues with banking range from unclear communication through to complete termination.
Banks informed a little bit more than half (out of the crypto-hedge funds) that their relations would be ended.
The reasoning behind the decisions is often vague, or even nonexistent. The banks who did explain their actions cited the desire to minimize exposure of crypto-clients or to the industry.
John D’Agostino, head of institutional sales at Coinbase and an AIMA board member, emphasized that while all affected funds eventually found banking partners, they were often smaller or regional institutions.
Operation Chokepoint 2
There is a lot of talk about the Joe Biden administration and the Crypto Industry. “Operation Chokepoint 2.0,”This is a’suppressive measure against the crypto industry by restricting access to banking services.
Paul Grewal is the Chief Legal Officer of Coinbase. Letters of release Federal Deposit Insurance Corporation to Banks throughout 2022. The financial authority will urge the banks to stop or completely stop all crypto-related activity.
These documents were obtained via a Freedom of Information Act request (FOIA), filed on October 18, seeking clarification about an alleged deposit cap of 15% imposed by crypto-friendly bank. Grewal said that the letters are proof of Operation Chokepoint 2.
Custodia Bank’s CEO Caitlin LONG echoed this sentiment and said that the letters are proof of an organized effort to hinder crypto in the US.
Austin Campbell, CEO, global digital payments firm WSPN Share this article Operation Chokepoint 2 is real, as the AIMA study confirms.
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