- Many of the people working in the cryptocurrency industry had a negative banking experience.
- Some were prevented from accessing their funds while others lost their accounts.
- It’s no surprise that many people are working hard to disrupt the banking industry.
Many of today’s leaders in the cryptocurrency space were victims of poor banking. To some, the experience was so bad that they are now spearheading the disruption of the banking system. For instance, Changpeng Zhao, chief executive of Binance, shared one negative experience with the Royal Bank of Canada.
We asked other people working in crypto to recall their worst banking experiences. Others narrated how banks prevented them from accessing their funds. Then there are some who lost their accounts due to the nature of their business.
Banks Limit Transactions Under the Guise of Fraud
At least three times, I’ve had a bank lose over $100,000 of my money, and had them freeze funds when they thought my own transactions were fraudulent.
Mr. Beadles added,
Countless times I’ve traveled out of town only to have my bank shut off my ATM card just because I tried to pull out a few hundred dollars in a different state or country. These are just a few of the reasons why we created Monarch, to empower people to be in charge of their own hard-earned money.
Banks Charge Hefty Fees While Providing Poor Services
Sending money abroad can be a frustrating experience. The process is incredibly slow yet the banks have the nerve to charge exorbitant fees.
Crypto trader Credible Crypto appeared as if the analyst has had it with banks, saying:
I send international wire transfers all the time. It’s a major pain when I send a wire transfer on Thursday after 1PM it doesn’t reach my suppliers until Monday, which is kind of ridiculous. Also, I get charged anywhere from 30-60 USD in fees.
Andy Cheung, head of operations at OKEx, echoes this sentiment. The OKEx executive told CCN,
A negative aspect of traditional banks is that they don’t run 24/7. They have complicated procedures in place and take too much time to process transactions. Many companies need to do business in other countries and settle urgent payments, but traditional banks often delay wire transfers or make it very difficult to wire money to certain countries.
Banks Shut Down Accounts Because They Can
Some banks have become so big that they don’t mind losing a customer or two. They can quickly unbank you if they do not like your line of business.
Danny Scott, CEO and co-founder of crypto and bitcoin exchange CoinCorner, experienced this first-hand while dealing with HSBC.
Being co-founder and CEO of CoinCorner, I have also found myself – as an individual – struggling for banking from what I believe was a pure anti-competitive move by HSBC. I’d had an HSBC personal account for around 15 years with no problems ever, until CoinCorner came onto their radar.
The chief executive added,
My account was closed with 30 days notice with no reason, when speaking to them I was told that London HQ had requested my account to be closed, which meant they could not give me a reason. What they could tell me was ‘If my circumstances changed I would be welcome back.’
Todd Butterfield, owner of the Wyckoff Stock Market Institute, shares the same experience. The trader told CCN,
I had a 10 year old personal bank account shut down due to crypto. [The bank] did not like activity between me and Coinbase. [I] do a lot of business in crypto so [there were] numerous deposits they did not like.
The banking system is old and centralized. Many think they are too big to fail. Let’s see if that holds true in the coming years.