Smaller banks continue to support cryptocurrency businesses amid a crackdown.

03/13/2023 07:54 • Metaverse Matters • 153 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 suggests that three US banks which were providing banking services to cryptocurrency businesses have been eliminated. However, some smaller banks continue to offer support, despite the ongoing crackdown on cryptocurrencies by financial institutions worldwide. In the tweet, Larry Cermak, the Research Director of The Block, highlighted that large banks such as JPMorgan Chase and Bank of New York Mellon were not mentioned because they are not accessible to smaller businesses.

Despite the negative attitudes towards cryptocurrencies from traditional financial institutions, there are still a few smaller banks that continue to provide crypto banking services. This may be a sign of changing views within the banking industry and may lead to more widespread adoption of cryptocurrencies.

The survival of smaller banks offering these services could also be seen as a result of the growing recognition of cryptocurrency as a legitimate asset class. As cryptocurrency continues to gain momentum, businesses are looking for more secure and accessible ways to manage their virtual assets. Smaller banks that have embraced emerging technologies may find themselves in a better position to attract new clients, including those interested in cryptocurrency.

Additionally, this could be interpreted as a signal that crypto businesses are concerned about their reputations in the eyes of banks, and they want to ensure that they adhere to regulatory requirements. By partnering with smaller banks, they may feel more secure knowing that their service providers take regulatory compliance seriously.

In conclusion, while the crackdown on cryptocurrencies persists, the news that some smaller banks continue to support the industry is a positive development. As the notion of cryptocurrencies as a legitimate asset class gains traction, more banks may decide to offer these services, allowing the industry to grow even further.

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