In the last week, three of the larger banks that specifically had digital assets solutions for crypto holders are no more. Having a regulated and licensed banking option for crypto holders has become much more challenging, especially for Americans. The ability to have a seamless banking option for crypto to fiat and back is now much more challenging to find and in short supply.
Only a few licensed and regulated banks now offer services that crypto holders need and can turn to. Using an exchange or fintech platform is not ideal, but, in many cases, it is the option people turn to. However, a regulated banking solution enhances your security, flexibility, and service options, all while cutting costs. It is clearly worth the effort to find one.
So, with SVP, Silvergate, and Signature all gone, where can you turn to? For international users, there are some options, albeit limited in Europe. But for Americans, while options are even more limited, they are there, if you look hard enough. Americans will have to turn to the Caribbean for regulated and licensed digital banking as they (as with fiat banking) are not welcomed in most jurisdictions, even more so in the digital space.
Even in the Caribbean, US based customers are now getting shut out. Case in point, Delchain, the digital arm of the Bahamas-based Deltec Bank and the largest digital asset bank in the world, now prohibits US citizens and residents from having an account. Bermuda touts Jewel Bank, but they still need to be opened for business and have yet to determine a firm date to do so (although they say they will start taking deposits sooner than later). So what’s left that can actually provide real crypto services is a small but growing regulated and licensed bank called EQI, which may be the biggest beneficiary in this volatile banking marketplace.
Some significant jurisdictions exploring allowing for crypto banking include Switzerland, the UK, and Singapore, but they all go back to allowing and to different degrees of access. An example of this is the recent limits placed on crypto purchases and transfers by large UK banks limiting access to the cryptocurrency marketplace.
While there are very limited choices, they will stay limited for the next 12-36 months before opening wide, as regulation takes hold. Main Street and Wall Street are all in on crypto but don’t want to lose control over it before they are able to fully jump in.
I’d recommend making an effort to find a regulated and licensed bank and wait it out until the dust settles, regulation spreads, and options increase.
Source: https://www.thecoinrepublic.com/2023/03/22/banking-for-crypto-are-there-any-options-left-for-regulated-crypto-banking/