We have seen various banks prevent consumers from either buying or selling cryptocurrency in a convenient manner. It is unclear why these financial institutions would take such action, as they only hurt their own business in the process. The latest bank to do something drastic is Lakestone Bank & Trust.
Another Bank Openly Opposing Bitcoin
It is uncanny how many banks and financial institutions have taken a dislike to Bitcoin and cryptocurrency. Although this trend has been apparent for quite some time now, things have recently gotten worse as several banks around the world have acted to prevent customers from buying or selling crypto.
In most cases, banks will call customers to verify their intent to either buy or sell Bitcoin. That is not uncommon, but the bank can still decide to either process or block said transactions regardless of their customers’ wishes. It is one of the downsides of using a bank account, as consumers are never in full control of their money. In most cases, it’s rare that a bank will prevent someone from making a purchase or a sale. In the case of cryptocurrency, that situation is very different, though.
If the new approach by Lakestone Bank & Trust is any indication, things will be getting a lot more difficult for cryptocurrency enthusiasts. More specifically, this institution has been sending customers letters explaining how they will monitor any bank account behavior associated with cryptocurrency. In one instance, the bank hinted that a customer’s Coinbase activity had been flagged and that the situation would be monitored moving forward. Moreover, the institution warned that it might close the bank account in question.
Although such harsh language is not uncommon among banks that do not take kindly to Bitcoin and other cryptocurrencies, it doesn’t happen all that often that they send letters to customers. This seems to indicate the bank is taking a very aggressive stance toward any customers who use Bitcoin or any other cryptocurrencies. Whether or not it will actually begin closing customer bank accounts in the near future is anybody’s guess, though. It wouldn’t be the first time a bank decided to take such action as a result of Bitcoin activity.
It is remarkable how this bank mentioned Coinbase by name, though. Even though most cryptocurrency exchanges no longer mention “Bitcoin” in the message field of transactions, financial institutions are well aware of which company names they need to look out for. Such surveillance is certainly frowned upon by cryptocurrency enthusiasts, for obvious reasons.
Bitcoin and crypto will never have the best of relationships with financial institutions. Even though banks are designed to be providers of financial access and related services, they seemingly take the opposite approach when it comes to dealing with investments that are uncontrollable by governments. That is another reason why we need to move away from centralized exchange options as quickly as possible, as this situation will only become more problematic over time.