"Over 120 Cryptocurrency Hedge Funds Face Banking Service Challenges Over the Past Three Years"
Summary
- It was reported that over the past three years, approximately 120 cryptocurrency hedge funds have faced difficulties in using banking services.
- Half of these cryptocurrency hedge funds have received service termination notices, often with ambiguous reasons.
- Banks are showing a tendency to limit exposure to cryptocurrency-related clients.
Over the past three years, approximately 120 cryptocurrency hedge funds have faced difficulties in using banking services. On the 20th (local time), the Wall Street Journal (WSJ) reported, "It is noteworthy that none of the 20 alternative investment firms in other asset classes such as real estate and private credit reported similar difficulties," adding, "Banking issues ranged from unclear communication to termination of relationships." Furthermore, "Half of the cryptocurrency hedge funds that experienced issues reported having received service termination notices from banks," and "The reasons for the decisions were often ambiguous, with banks frequently citing exposure limitations to cryptocurrency clients or the industry." Previously, Coinbase had obtained and disclosed a letter sent by the Federal Deposit Insurance Corporation (FDIC) to banks during the de-banking incident in 2022, requesting them to "temporarily suspend all cryptocurrency-related activities." 
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
