- Crypto-Related companies struggle to get essential banking services.
- Even friendly jurisdictions cannot guarantee comfortable business conditions.
Cryptocurrency-related businesses are struggling with opening bank accounts even in the most crypto-friendly jurisdictions. The issue is true both to the US-based banks that work under tight regulatory conditions and Maltese banks that are supposed to be loyal to the nascent industry.
As the Times of Malta reports, most Maltese banks reject the applications of the companies operating in the cryptocurrency or blockchain space. They shoo away from the crypto industry considering its too risky, the numerous sources told the Maltese media outlet.
Meanwhile, Malta’s authorities take pains with their awareness campaigns with financial institutions. They want to make sure that banks understand the difference between blockchain startup and cryptocurrency operator, as their grand plan to make Malta a European blockchain hub is under threat.
“The general understanding is that when it comes to crypto operators, banks are waiting for operators to obtain an MFSA [Malta Financial Services Authority] license before opening their doors – which is understandable,” Parliamentary Secretary for Financial Services Silvio Schembri said in the interview with the Times of Malta.
Depriving blockchain and cryptocurrency-focused business of essential banking services creates enormous obstacles for the industry development and forces companies to get creative to find roundabout solutions.
Despite the growing trend of institutional adoption, and banks partnering with crypto startups, the industry seems to be miles away from complete integration with the global financial system.
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