Banking On The Banishment – Is Crypto De-Banking Causing More Harm Than Good?

The cryptoasset industry has been disrupting the trad-fi sector for the better part of the past 10 years. However, recently there has been a gradual yet increasing trend of so called "de-banking" and "de-risking" of cryptoasset business by UK banks. In short, these terms refer to the actions taken by banks to limit or terminate relationships with and to cryptoasset businesses, usually owing to perceived risks particularly with regards to fraud, money laundering and / or terrorist financing.

Cryptoasset de-banking refers to the phenomenon involving traditional banks and financial institutions severing ties, or limiting relationships, with new or existing cryptoasset businesses and, in some cases, preventing individuals from being able to transact in cryptoassets.