Small Banks Are Making Millions Out Of Cryptocurrency in America

Banks and crypto are like water and oil, they tend not to mix very well, and there has been real tension between banks and exchanges all around the world. In Chile, banks have refused to maintain exchanges bank accounts open. That led to a legal battle of the involved exchanges vs banks, where exchanges emerged victorious, with their accounts being reactivated by judicial mandate. But while big banks have taken cryptocurrencies as a virus, banning its use and purchase, little banks have embraced it, having a lot of success in it. According to information from an article in the Wall Street Journal small banks are experiencing a new spring while lending their platforms to well-established crypto-related businesses and startups
Little banks have even doubled their revenue by simply not refusing to do business with these platforms. That is the case of Silvergate, a community bank in San Diego, whose value skyrocketed from 978 million dollars to 1.9 billion dollars in just one year. Metropolitan Bank, also a small bank based in New York City, has more than tripled its revenue, just by servicing crypto-exchanges, without having to build new offices to expand. These banks are giving their crypto-customers a service that their great siblings have refused to do, and are profiting from it. But not without its risks.
Let’s say that in the regulatory framework, banks are the ones that have to ascertain that the money that comes from crypto endeavors is clean. That is why the big banks remain hesitant to provide their services to crypto-businesses: to protect themselves from any legal action that could originate from this. Small banks are aware of it, but they are taking the risk of doing it. These banks work in conjunction with exchanges and have to verify that they do comply with anti-money laundering and anti-anonymity policies, also known as KYC (Know Your Customer) policies. Still, as the facts suggest, profit can be made of these relationships between banks and exchanges complying with the current laws.

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