About 120 crypto hedge funds have faced obstacles in obtaining banking services in the past three years

According to the WSJ, a new survey shows that out of 160 cryptocurrency hedge funds, around 120 funds reported having issues with basic banking services over the past three years. These funds invest in digital currencies and blockchain technology companies. The other 20 alternative investors surveyed (in areas such as real estate and private credit) did not report similar problems. The banking issues include poor communication and direct termination of business relationships. Among the cryptocurrency hedge funds that encountered problems, more than half were explicitly told by banks that they would terminate their business relationships. The reasons given for these decisions were often vague or non-existent. When banks provided explanations, they stated that they wanted to limit their risk exposure to cryptocurrency clients or the industry.