Relationship building is a hedge against banking – OKX exec
The entire crypto industry is facing the threat of being unbanked under Operation Chokepoint 2.0. Jason Lau – chief innovation officer at crypto exchange and self-sustaining wallet provider OKX – told Cointelegraph that developing relationships with banks and key holders is a hedge against bank blocking.
Lau said the traditional financial world was based on trust and relationships with banking institutions, financial regulators and other stakeholders were key to maintaining strong partnerships. Lau told Cointelegraph in an interview:
“You have to take the time to build relationships with all your stakeholders, regulators and banking partners. We've spent years and years working with our partners and stakeholders to make sure they understand our work.”
Many of the Operation 2.0 debanking stories come from the United States and American entities. Yet banking is a global problem with implications for business, technological innovation, and freedom of speech.
An updated FDIC notice asking banks to temporarily suspend crypto-related activities. Source: FDIC
Related: Lead Co-Founder Shares How Crypto Startups Can Avoid Banking
Debanking around the world
Binance Australia's former regional manager Ben Rose said the exchange received 12 hours' notice before Bangkok. Rose said the reasons for the sudden midnight withdrawal were unclear.
In July 2023, leaked documents confirmed that UK politician Nigel Farage was banned from the bank for his political views. This has prompted UK politicians to propose stripping banks of their licenses if they infringe on free speech.
The UK government has put in place several consumer protection provisions for banks, including three months' notice to customers before an account is closed, a clear reason for account closure and the ability to appeal the closure.
Crypto companies report return by UK banks in 2023 Common problems include excessive paperwork, account suspensions, and application rejections without good reason.
The problem is so widespread that crypto industry executives brought the issue to the attention of former UK Prime Minister Rishi Sunak. However, crypto companies and projects are still reporting similar issues in 2024.
Due to its widespread use in online circles and digital culture in the world of 2023, debanking has compiled a list of Collins Dictionaries' best words of the year.
Magazine: Legislators' fear and skepticism fuel proposed crypto regulations in the US.
