It is absolutely true that most banks simply cannot look away from the fact that cryptocurrency is booming ahead of them and there is nothing they can do about it. Cryptocurrencies are independent of central banks, and the risk that they will infiltrate traditional financial systems. Cryptocurrencies and their trading helped the people to become their own bookkeepers and this is a main reason why banks hate your trading accounts and cryptocurrencies. You can go to Coin-Bits.co for Trading and use your skill to make profits.
Cryptocurrencies have a lot of advantages over the centralized financial systems like banks because of their competence to function without a single point of failure which hackers or any other bad actors can target.
Why Banks don’t like crypto and your independent trading accounts?
banks have been against cryptocurrencies; they have incredible advantages over ordinary currencies. Banks often cite the extreme volatility of this currency and their potential for use for money laundering.
Crypto market exceeds the size of large banks
The crypto market has a market capitalization of $ 470 billion, with a BTC price exceeding $ 10,000. This exceeds that of JPMorgan Chase, the largest bank in the United States. Bitcoin's market capitalization alone compares to that of Bank of China. Ethereum follows this with a market capitalization comparable to Morgan Stanley.
Banks fear that the growth rate of the crypto market will have a serious impact on their operations. Banks seem to be fighting cryptocurrencies to slow their growth rate. Many banks have recently banned their customers from buying cryptocurrencies with their credit cards. This is a major initiative to slow the growth of the crypto market.
The compliance cost incurred
Most cryptocurrency investors deposit large amounts. Banks have a duty to investigate funds to ensure that they are clean and do not come from illegal activities. They carry out an in-depth investigation into the source of funds and the beneficial owner of the account. In addition, the bank must ensure that the account holder complies with the taxes. If you are from the United States, the bank must send a report on the transaction to the US IRS. For those in the EU, the bank must comply with the OECD CRS reporting requirements. All of this requires time and resources that banks are not ready to incur.
Fund source tracking
The other reason why banks might hate cryptocurrency is that tracking the source of funds is impossible. There is no way they can investigate the funds when they are sent from the cryptocurrency wallet to the bank account. With this, they cannot tell if the money in your account is clean. The bank could be held responsible for ill-gotten gains in its system. Therefore, they view this as high risk as they cannot prove how the funds were earned.
Cryptocurrency trading remains a big threat to banks. The speed at which the world of cryptography has grown in recent months is overwhelming. There are hundreds of ICOs and huge fluctuations in the major cryptocurrencies such as Bitcoin and Ethereum. While this is a big hurdle for banks, it is what many investors love. However, not all banks hate cryptocurrency. Some have already invested in cryptocurrencies.
However nowadays, anyone can open a bank account and get regular interest rates, but you can also send, receive and trade your income and be your own accountant if you want to trade your money by yourself, get advice and advice from coin-bits experts through call.