Alty

The debanking crisis isn't confined to the United States. International banks that rely on American correspondent banking relationships have also debanked crypto customers outside of the U.S. A few years ago, I experienced this firsthand with First Citizens Caribbean Bank, a non-national Barbadian bank, where I had held accounts for over a decade. The reason? I received a deposit from Kraken's Payward Inc. (@jespow). That deposit was flagged as a bitcoin transaction, and my accounts were immediately shut down. I had the call with the CEO of the bank who informed me that my industry is not welcomed at their bank as the risk of losing their correspondent relationship was too high. Barbadian (and other national) banks face the risk of losing their correspondent banking relationships if they fail to adhere to the "standards" set by American banks. In this case, the standard was clear—do not bank cryptocurrency companies or individuals. This highlights the broader issue: The debanking crisis had far-reaching consequences, extending well beyond the United States.