The entire Cryptocurrency industry is facing the threat of bank service withdrawal under the Operation Chokepoint 2.0 campaign. Jason Lau - Creative Director at the Cryptocurrency exchange and self-custodial wallet provider OKX - shared with TinTucBitcoin that developing relationships with banks and key stakeholders is a countermeasure to this risk.
Lau said the traditional financial world is heavily dependent on trust, and building relationships with banking institutions, financial regulators, and other stakeholders is the key to maintaining strong partnerships. Lau responded in an interview with TinTucBitcoin:
"You need to take the time to build relationships with all of your stakeholders, including your regulators and banking partners. We've spent years working with partners and stakeholders to ensure they understand our business well."
Many stories of bank service withdrawal in Operation 2.0 originate from the United States and US-based entities. However, debanking remains a global issue with consequences for businesses, technological innovation, and freedom of expression.
A heavily redacted FDIC notice demanding banks pause Cryptocurrency-related activities. Source: FDIC
Debanking Worldwide
According to former Binance Australia regional director Ben Rose, the exchange only received 12 hours' notice before being debanked. Rose stated that the reason for the sudden, overnight debanking was unclear.
In July 2023, leaked documents revealed that British politician Nigel Farage was debanked due to his political views. This has led to UK politicians proposing to revoke banking licenses if they violate freedom of speech.
The UK government has introduced some consumer protection measures to safeguard customers, including a three-month notice period before account closure, specific reasons for account closure, and the opportunity to appeal closure decisions.
Cryptocurrency companies have also reported being denied by UK banks in 2023. Common issues include excessive paperwork, account freezing, and rejections without sufficient justification.
The problem has escalated to the point that Cryptocurrency industry leaders have brought the matter to the attention of former UK Prime Minister Rishi Sunak. However, Cryptocurrency companies and projects continue to report similar issues in 2024.
The concept of "debanking" has even made it onto the Collins Dictionary's Word of the Year list for 2023 due to its widespread use in online circles and digital culture.
