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The Blockchain Affiliation, a cryptocurrency advocacy group, has filed further Freedom of Data Legislation (FOIL) requests to regulators within the US. The group had initially filed for info from the Federal Deposit Insurance coverage Company, the Board of Governors of the Federal Reserve System, and the Workplace of the Comptroller of the Foreign money. The brand new requests had been submitted to the Federal Housing Finance Company and the New York Division of Monetary Providers, in search of additional info on the de-banking of crypto-friendly banks.
The group is fascinated by studying extra concerning the de-banking of cryptocurrency corporations after the closure of Signature Financial institution and the failure of Silvergate Financial institution. These two banks had been recognized for his or her pleasant stance in the direction of cryptocurrency-related companies, however each had been closed down, leaving many corporations within the crypto trade with out a banking companion.
The Blockchain Affiliation believes that these closures had been a results of regulatory stress, and that the shortage of transparency across the subject is problematic for the trade. By submitting these FOIL requests, the group hopes to shed extra gentle on the scenario and be certain that the regulatory course of is honest and clear.
The de-banking of crypto corporations has been a contentious subject for a while. Many banks are hesitant to work with corporations within the trade attributable to considerations round cash laundering and different unlawful actions. Nonetheless, for corporations within the crypto area, having a banking companion is important for conducting day-to-day enterprise operations.
The closure of Signature Financial institution and Silvergate Financial institution has highlighted the fragility of the connection between banks and cryptocurrency corporations. The Blockchain Affiliation is in search of to grasp what led to the closures and whether or not there was any unfair regulatory stress concerned.
This isn’t the primary time that the Blockchain Affiliation has filed FOIL requests to acquire details about the regulation of cryptocurrency-related companies. The group has been a vocal advocate for the trade and has labored to make sure that regulators take a good and balanced strategy to the sector.
Because the crypto trade continues to develop, it’s seemingly that we’ll see extra regulation and scrutiny from regulators. The actions of the Blockchain Affiliation show the significance of transparency and accountability on this course of, and spotlight the challenges confronted by corporations working on this area. By working along with regulators, the trade can be certain that it continues to thrive and innovate, whereas additionally addressing respectable considerations round safety and criminality.
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