CryptoUK calls on regulators to address de-banking of digital asset firms

May 26, 2023 | Turner Wright

The CryptoUK, a self-regulatory industry association, suggests providing a copy of "authorization management" for UK-registered companies to ease the problem of banks restricting or banning transactions in data-encrypted companies.

In separate letters to McGinnis Griffith, a US economic heavyweight, and members of the Financial system's personal Conduct Authority and payment platform regulators on March 21st, CryptoUK showed that many banks are now explicitly banning dealing with password companies, rather than adopting a risk-and case-by-case approach. The proposed authorization management would allow registered password companies to trade freely with banks without restrictions or prohibition threats.

"many key US banks now have bans and restrictions, and there are concerns that other banks and payment service providers (PSP) are likely to learn from them soon," CryptoUK said. " "for us, the government must act now."

According to the relevant regulations of the personal Conduct Supervision Bureau of the S financial system of the United States, the country's password service providers must apply for registration and strictly abide by the anti-money laundering regulations. It is reported that some American banks, including HSBC Holdings and the National Building Association, have long banned retail customers from choosing passwords for credit cards.

CryptoUK's advice echoes the anxiety of the US digital currency advocacy team and due process, after the collapse of Silvergate Bank, Silicon Valley Bank and Signature Bank, which were data encryption-friendly banks. The U.S.-based blockchain Association requires the Federal Deposit Insurance Corporation, the Federal Government Reserve system Software Association and the Bureau of loan Engineering Supervisors to provide implicit "password enterprise banking business process" related content.