Summary
- President Donald Trump of the United States announced that he had signed an executive order allowing fines to be imposed on financial institutions involved in 'debanking'.
- The executive order explained that if a financial institution closes accounts for political or illegal reasons, federal regulatory agencies can demand corrective actions.
- In the past, debanking cases were frequent among virtual asset companies, and it was reported that during the Biden administration, there were allegations of measures restricting banking access.
On the 7th (local time), the White House announced that President Donald Trump of the United States had signed an executive order allowing fines to be imposed on financial institutions involved in debanking (restriction of access to banking services).
The White House explained, "If a financial institution carries out debanking by closing accounts for political or illegal reasons, federal regulatory agencies will be able to require corrective actions such as fines for those institutions."
In the past, cases of debanking were frequently reported among virtual asset (cryptocurrency) companies.
During the Biden administration, there were also allegations that 'Operation Choke Point 2.0' (a measure to pressure the virtual asset industry by blocking banking access) had been implemented.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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