Crypto companies continue facing banking rejections despite increased regulatory frameworks, according to Jelizaveta Paskovskaja, MLRO at CryptoProcessing by Coinspaid. The core issue isn’t lack of regulation but rather an absence of trust, as traditional banks often prefer outright refusal over conducting proper risk assessments of crypto partners.
Paskovskaja explains that successful banking relationships require crypto firms to present themselves as legitimate financial institutions rather than tech startups. This means demonstrating clear governance structures, transparent ownership that compliance teams can quickly verify, and empowered compliance officers capable of halting risky transactions. Documentation alone proves insufficient. Banks need evidence of systematic onboarding processes, timely escalations, regular reviews, and concrete proof that flagged issues receive resolution.
The landscape has evolved significantly, with anti-money laundering discussions becoming increasingly specific. European regulations including MiCA, along with heightened focus on sanctions compliance, Travel Rule adherence, and transaction monitoring, have pushed the industry toward greater maturity and precision in risk management conversations.
FXnCO Insight
Crypto firms seeking banking partnerships should prioritize operational transparency and institutional-grade compliance infrastructure over regulatory checkbox exercises.
Source: Finance Magnates