Investigating Allegations of De Banking: Blockchain Association Submits Freedom of Information Act Requests

According to reports, the Blockchain Association has made a further request under the Freedom of Information Act (FOIA) to investigate allegations of de banking that may have improperly led to the bankruptcy of Signature, Silicon Valley, and Silvergate. The association stated in a statement that it has submitted information requests to the Federal Housing Finance Agency (FHFA) and the New York Department of Financial Services (NYDFS).

The Blockchain Association has requested an investigation into encrypted and friendly bank information

The Blockchain Association, a leading trade association for the blockchain industry, has made a new request under the Freedom of Information Act (FOIA) to investigate allegations of de banking that may have improperly led to the bankruptcy of Signature, Silicon Valley, and Silvergate. In a statement, the association stated that it has submitted information requests to the Federal Housing Finance Agency (FHFA) and the New York Department of Financial Services (NYDFS).

Understanding De Banking

De banking is a practice where banks and financial institutions terminate or limit their relationships with certain types of customers, usually those that are deemed too risky or not profitable enough. De banking has become increasingly common in recent years, especially in industries that are considered high-risk or controversial, such as cannabis, gambling, and the adult entertainment industry.

Allegations of De Banking in the Blockchain Industry

Since the advent of blockchain technology and cryptocurrencies, the industry has been fighting an uphill battle in terms of gaining legitimacy and acceptance in the mainstream financial world. Many banks and financial institutions have been hesitant to work with blockchain and crypto companies, citing concerns around regulatory compliance and risks associated with volatile cryptocurrencies.
However, some blockchain companies have reported that they have been unfairly targeted by de banking practices, which have led to financial losses and in extreme cases, bankruptcy. Signature, Silicon Valley, and Silvergate are just a few examples of blockchain companies that have reportedly been de banked by their financial partners.

The Blockchain Association’s Investigation

The Blockchain Association has been at the forefront of advocating for fair treatment of blockchain and crypto companies in the financial industry. In their latest effort, they are seeking to uncover any evidence of wrongdoing or discrimination related to de banking in the blockchain industry.
The FOIA requests submitted to the FHFA and the NYDFS are seeking information related to the de banking practices of banks and financial institutions in the blockchain industry. The Blockchain Association hopes to uncover any evidence of discriminatory practices or regulatory violations that may have led to the unjust de banking of blockchain and crypto companies.

Impacts on the Blockchain Industry

The de banking of blockchain and crypto companies can have significant impacts on the industry as a whole. Without access to traditional banking services, many companies in the blockchain industry may struggle to operate and grow. This can stifle innovation and impede progress in a highly promising field.
Furthermore, the de banking of blockchain and crypto companies can perpetuate negative stereotypes and stigmatization of the industry, making it even more difficult for companies to gain mainstream acceptance and legitimacy.

Conclusion

The Blockchain Association’s request for information under the FOIA is a positive step towards greater transparency and fairness in the financial industry. By investigating allegations of de banking in the blockchain industry, the association hopes to not only uncover any wrongdoing but also pave the way for greater acceptance and cooperation between traditional financial institutions and the blockchain industry.

FAQs

1. What is de banking?
De banking is a practice where banks and financial institutions terminate or limit their relationships with certain types of customers, usually those that are deemed too risky or not profitable enough.
2. Why is the de banking of blockchain and crypto companies a concern?
The de banking of blockchain and crypto companies can have significant impacts on the industry as a whole. Without access to traditional banking services, many companies in the blockchain industry may struggle to operate and grow.
3. How is the Blockchain Association advocating for fair treatment of blockchain and crypto companies in the financial industry?
The Blockchain Association is advocating for fair treatment of blockchain and crypto companies in the financial industry through various efforts, including submitting information requests under the FOIA to investigate allegations of de banking.