The Blockchain Affiliation, a cryptocurrency advocacy group, has filed extra Freedom of Info Legislation (FOIL) requests to regulators within the US. The group had initially filed for info from the Federal Deposit Insurance coverage Company, the Board of Governors of the Federal Reserve System, and the Workplace of the Comptroller of the Foreign money. The brand new requests had been submitted to the Federal Housing Finance Company and the New York Division of Monetary Providers, searching for additional info on the de-banking of crypto-friendly banks.
The group is enthusiastic about studying extra concerning the de-banking of cryptocurrency firms after the closure of Signature Financial institution and the failure of Silvergate Financial institution. These two banks had been identified for his or her pleasant stance in the direction of cryptocurrency-related companies, however each had been closed down, leaving many firms within the crypto trade and not using a banking accomplice.
The Blockchain Affiliation believes that these closures had been a results of regulatory strain, and that the shortage of transparency across the challenge is problematic for the trade. By submitting these FOIL requests, the group hopes to shed extra mild on the state of affairs and make sure that the regulatory course of is honest and clear.
The de-banking of crypto firms has been a contentious challenge for a while. Many banks are hesitant to work with firms within the trade attributable to considerations round cash laundering and different unlawful actions. Nonetheless, for firms within the crypto area, having a banking accomplice is important for conducting day-to-day enterprise operations.
The closure of Signature Financial institution and Silvergate Financial institution has highlighted the fragility of the connection between banks and cryptocurrency firms. The Blockchain Affiliation is searching for to know what led to the closures and whether or not there was any unfair regulatory strain concerned.
This isn’t the primary time that the Blockchain Affiliation has filed FOIL requests to acquire details about the regulation of cryptocurrency-related companies. The group has been a vocal advocate for the trade and has labored to make sure that regulators take a good and balanced method to the sector.
Because the crypto trade continues to develop, it’s seemingly that we are going to see extra regulation and scrutiny from regulators. The actions of the Blockchain Affiliation exhibit the significance of transparency and accountability on this course of, and spotlight the challenges confronted by firms working on this area. By working along with regulators, the trade can make sure that it continues to thrive and innovate, whereas additionally addressing authentic considerations round safety and criminal activity.