Banks Won't Fully Enter Crypto Without This: The Barrier in Front of Billions of Flows! - Coin Bulletin

According to investment bank TD Cowen, banks will limit their interest in crypto assets until anti-money laundering regulations are clarified.

In a note published by the Washington Research Group of TD Cowen, led by Jaret Seiberg, the team emphasized that banks may be more willing to offer crypto custody services, but they will be cautious in this area if the risks related to money laundering, terror financing, and sanctions avoidance are not clarified.

This situation is currently seen as a barrier to institutional investors being exposed to cryptocurrencies with billions of dollars in assets.

This week, two separate sessions will be held in the US Congress discussing the banking sector's relationship with crypto.

It was stated that in the meetings to be held at the Senate Banking Committee on Wednesday and the House Financial Services Committee on Thursday, the requirements for cryptocurrencies of regulatory agencies such as the Office of the Comptroller of the Currency (OCC) may also be discussed.

Recently, the difficulties faced by cryptocurrency companies with banks in Washington have been re-discussed. After the collapse of the FTX exchange in late 2022, regulatory institutions such as the Federal Reserve and OCC had issued warnings about the risks of crypto assets.

(# It would be a wrong decision for cryptocurrencies

Seiberg, stating that it would be a wrong decision, said that as long as the risks related to money laundering and the Banking Secrecy Act )BSA### continue, banks will continue to limit their exposure to crypto.

Seiberg, stating that the penalties introduced within the scope of these regulations are quite severe, said that it is not possible for banks to provide extensive services to the crypto sector before a clearer legal framework is established.

Seiberg, expressing that banks may also be reluctant to issue stablecoins due to AML/BSA risks, stated that banks are concerned about the potential responsibility for the use of stablecoins in illegal transactions.