Regulatory Spotlight: US Watchdog Cites ‘Debanking’ of Crypto Sector by Major Banks
A recent pronouncement from the Office of the Comptroller of the Currency (OCC), a leading US financial regulator, has brought to light a significant trend within the banking sector: the denial of essential financial services to specific industries, prominently including digital asset businesses. This practice, often termed “debanking,” has implications for market access and fair competition, prompting a potential referral to federal law enforcement.
OCC’s Findings on Banking Service Denials
The OCC’s investigation revealed that the cryptocurrency industry is among several sectors facing systematic exclusion from traditional banking services. This denial of access, encompassing everything from basic account provisions to more complex financial instruments, poses substantial operational challenges for affected businesses.
- Targeted Sectors: While crypto assets were explicitly named, the OCC indicated that other industries are also encountering similar barriers to banking access.
- Involved Institutions: The regulator’s assessment pointed to the involvement of at least nine major banking institutions in these debanking practices.
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