Reserve

Strong

<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/federal-reserve-limits-crypto-friendly-banks-operations/" data-wpel-link="internal">Federal Reserve Limits Crypto-Friendly Bank’s Operations</a><br></p>
<p style="text-align: justify"><strong>Tyler Winklevoss</strong>, one of the crypto-friendly banks in the US, Customers Bancorp, is under pressure from the Federal Reserve, which has restricted its ability to provide <a href="https://finance.coin-turk.com/" data-wpel-link="exclude">banking</a> services to <a href="https://en.coin-turk.com/bitcoin-maintains-high-levels-while-ethereum-whales-accumulate/" data-wpel-link="internal">crypto</a> companies. The Federal Reserve mandates this bank to notify 30 days in advance before establishing a relationship with a new crypto company, limiting the operational capabilities of crypto banks. This situation has caused significant dissatisfaction within the crypto community.</p> 
<h2 style="text-align: justify" id="strict-supervision-on-crypto-friendly-banks">Strict Supervision on Crypto-Friendly Banks</h2> 
<p style="text-align: justify">The Federal Reserve has imposed a sanction on Customers Bancorp, one of the crypto-friendly banks in the US, citing serious deficiencies in the bank’s risk management and anti-money laundering measures. This decision significantly restricts the bank’s ability to provide services to crypto companies.</p> 
<p><img loading="lazy" loading="lazy" decoding="async" class="wp-image-378664 size-full aligncenter" src="https://coin-turk.com/wp-content/uploads/2024/08/bitcoin-31-2.jpg" alt="" width="740" height="415"></p> 
<p style="text-align: justify">Specifically, the requirement to notify 30 days in advance before establishing a relationship with a new crypto company limits the bank’s maneuverability. The crypto community views this as a severe blow to the industry’s development.</p> 
<h2 style="text-align: justify" id="strong-reactions-from-the-crypto-community">Strong Reactions from the Crypto Community</h2> 
<p style="text-align: justify">Tyler Winklevoss, one of the founders of Gemini, strongly reacted to this decision by the Federal Reserve. Banks like Customers Bancorp are among the rare financial institutions that support the crypto sector.</p> 
<p style="text-align: justify">However, this decision by the Federal Reserve severely limits the operational capabilities of such banks. Winklevoss describes this situation as a restriction of financial freedom and argues that the crypto community should resist this pressure.</p> 
<h2 style="text-align: justify" id="effects-of-the-federal-reserve-s-decision">Effects of the Federal Reserve’s Decision</h2> 
<p style="text-align: justify">The Federal Reserve’s sanction on Customers Bancorp makes the bank’s future ability to do business with crypto companies uncertain. On the other hand, the deficiencies in the bank’s risk management and anti-money laundering measures also raise concerns in the crypto world. However, the main concern is that such regulatory pressures may hinder innovative initiatives in the sector and impede the growth of the crypto industry.</p> 
<p style="text-align: justify">This decision not only threatens Customers Bancorp but also the access of crypto companies to banking services. Therefore, the access of crypto companies to banking services, already limited, becomes even more uncertain due to such pressures, making the <a href="https://newslinker.co/what-are-the-future-technologies/" target="_blank" rel="noopener" data-wpel-link="exclude">future of the sector</a> more ambiguous.</p> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on COINTURK NEWS: </span> <a href="https://en.coin-turk.com/federal-reserve-limits-crypto-friendly-banks-operations/" data-wpel-link="internal">Federal Reserve Limits Crypto-Friendly Bank’s Operations</a></h5>
<p>The post <a href="https://en.coin-turk.com/federal-reserve-limits-crypto-friendly-banks-operations/" data-wpel-link="internal">Federal Reserve Limits Crypto-Friendly Bank’s Operations</a> appeared first on <a href="https://en.coin-turk.com" data-wpel-link="internal">COINTURK NEWS</a>.</p>

Federal Reserve Limits Crypto-Friendly Bank’s Operations

Table of Contents

COINTURK NEWS

Other articles published on Aug 11, 2024

Investors Increase Funding for Fewer Crypto Projects

Defying the Dip: Bitcoin Small Holders Addresses Hit New High

Celsius Files Lawsuit Against Tether for $2.4 Billion

Justin Sun Clarifies WBTC Concerns

XRP Drops as Bearish Market Pressure Grows and Faces Strong Resistance

Celestia and Beyond: Finding Stability in the Best Meme Coin on Presale During a Market Crash

Join our free newsletter for daily crypto updates!