Cryptocurrency NewsBuying a bank won't solve crypto's debanking issue

Buying a bank won’t solve crypto’s debanking issue

Despite increasing worries that crypto firms, including Binance’s own operation in Australia, may be debanked, Binance CEO Changpeng Zhao says the company is unlikely to purchase any financial institutions.

The collapse of several U.S. banks this year has prompted concerns that the pool of crypto-friendly banks is shrinking. To name a few of the crypto industry’s former key banking partners, Silvergate, Silicon Valley Bank, and Signature Bank have all capitulated this year.

Binance Australia said that it would stop offering services in Australian dollars after its payment provider decided to stop supporting the exchange. The exchange has yet to locate a different provider.

On the Bankless Podcast, CZ addressed a query asked by well-known Twitter user DegenSpartan, who requested humorously: “Can you please, buy a bank and make it crypto-friendly?”

“The reality is much more complex than the concept. You buy one bank, it only works in one country, and you still have to deal with the banking regulators of that country. It doesn’t mean you can buy a bank and do whatever you wanna do.”

“If the banking regulators say, ‘look you can’t work with crypto’ then they can take your license away if you do. So buying a bank doesn’t prevent regulators from telling you ‘no you can’t touch crypto’,” he added.


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