- Market Leaders in the Crypto Space Share Their Worst Banking Experiences
- Bank Transaction Limits and Hefty Fees a Front for Fraud
Most of the leaders in the cryptocurrency space today have been victims of poor banking services. To some of these important people, the experience was bad to the point that they have opted to spearhead a revolution in the banking sector. One example of such people is Binance chief, Changpeng Zhao. Zhao shared a negative experience he had with the Royal Bank of Canada. While many other leaders in crypto also narrated how banks didn’t grant them access to their funds. Some even lost their accounts because of the type of business they operated.
Bank Transaction Limits and Hefty Fees a Front for Fraud
The president of Monarch (a decentralized crypto wallet) Robert Beadles, was prevented from getting his money on multiple occasions. Sending money abroad too can also be a frustrating endeavor. The process is too slow but despite that these banks charge exorbitant fees and fix unrealistic transaction limits. Andy Cheung, who serves as the head of operations at OKEx is aware of the negative aspects of banking services. He claims that they don’t operate 24/7 and their processes are complicated and take too much time for transactions to be finished. Most companies need to do business in foreign countries and take care of urgent payments. Traditional banks always delay wire transfers. They always make it difficult to send money to some countries. Some banks have grown to the point that they don’t have any problems with losing a few customers.
Danny Scott, the CEO of crypto exchange CoinCorner also experienced a similar situation while dealing with HSBC. He said he struggled for banking due to an anti-competitive move by the bank in question (HSBC). According to him, his 15-year-old HSBC personal account never had any problems until CoinCorner entered the picture. Scott claims his account was closed after a 30-day notice for no reason. When spoke to them he was told that the banks London HQ had sent out a request for his account to be closed.
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Todd Butterfield, the owner of Wyckoff Stock Market Institute, also has a similar experience. The trader said he had a 10-year-old bank account that was shut down because of crypto. According to him, the bank didn’t like the activity between him and Coinbase exchange. He said he does business in crypto most of the time. Hence, there were many deposits in crypto that the bank didn’t like. It is safe to say the current banking system is outdated and mostly centralized. Most of these banks think they have grown big enough not to fail. Anyway, we can only wait and see if this belief will playout in the coming years.
Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.
