Where on one hand the cryptocurrency market is soaring and institutions are realizing the potential that the blockchain technology holds, on the other hand there has also been an increase in the growing skepticism.
The cryptocurrency adoption has seen some major developments. From major financial institutions like Goldman Sachs providing cryptocurrency exposure to clients to corporate behemoths like Tesla accepting cryptocurrency payments, the cryptocurrency industry has come a long way. But amidst all that, it cannot be ignored that cryptocurrencies have a notorious reputation for being the hotbed for illegal activities.
A major UK bank, NatWest, has issued a statement stating the bank will refuse service to customer who deal in cryptocurrencies. Morten Friis, head of the bank’s risk committee, revealed in a recent shareholder meeting the bank has no interest in dealing with clients whose businesses are backed by cryptocurrency exchanges or cryptocurrency trading and investing is their primary activity.
The bank’s decision stems from the notorious reputation of cryptocurrencies as well as crypto regulation. The regulation of the cryptocurrency is also a sore topic for many and entails unnecessary complications for anyone looking to get involved in the crypto sphere.
This is not the first time UK banks have had such a strong stance on cryptocurrencies. Another UK bank HSBC also has a strong anti-crypto narrative. The bank has barred its users from investing in MicroStrategy – the business intelligence company with major cryptocurrency investments. HSBC had also denied users to deposit profits from cryptocurrency exchanges.
The UK banks anti-crypto stance will also have consequences for the cryptocurrency adoption as corporate clients like Tesla that are moving towards accepting cryptocurrency payments will also now face difficulties.