The crypto industry faces a number of setbacks worldwide and one of these setbacks is the fact
that several banks across the world refuse to provide banking services blockchain and crypto related businesses.
This is a major setback because banking services are essential in the 21st Century for any business to succeed and by denying the services for the crypto industry, it stunts their growth.
Restrictions On Korea
Unfortunately, despite the best efforts of many in the industry, these practices continue to grow and it has been reported on July 1, 2019, that one of South Korea’s biggest bank intends to put heavy regulations in place on accounts that have been linked to crypto exchanges. The bank in question is Shinhan bank and they intend to put special measures in place that will involve dedicated staff who will work on analyzing the transactions associated with several bank accounts.
“We have set up a comprehensive plan for the elimination of telecommunication and financial fraud… We will continue to implement preventive measures so that customers will not be harmed in the future,”
a bank official said.
The reason for this new development is that the bank is trying to distance himself from claims that have been floating around but they are supporting financial criminals. This is due to the fact that a number of cases have come up in the last few years that involve the exchanges and it is well known that the crypto industry comes under even more scrutiny than usual.
As part of these measures, the bank will, later in July, launch an artificial intelligence monitoring system that we use deep learning to identify fraudulent transactions in record time and with more accuracy.
While these may put the crypto industry under more scrutiny, there might be some benefits to this as crypto exchanges have recently fallen victim of hacks such as Bithumb and even Binance. By subjecting accounts to this sort of scrutiny, fraudulent transactions such as moving funds that have been gotten illegally can be tracked down and the industry can receive more protection as a result. Also, should the crypto industry comply with these regulations over time, not only will criminals be caught and shady activity is prevented but the industry will gain the trust of not only major financial institutions but the public as a whole.
It should also be noted that not all banks are quite equipped to deal with the crypto industry as it has been stated in previous reports that certain banks do not feel that the industry is significant enough that an entire department be set up or to review account on a case-by-case basis and instead they find it easier to implement a blanket ban.
In the case of this bank, it seems they intend to make use of both artificial intelligence as well as a review of accounts to track activity rather than implementing a blanket ban which shows that they are at least willing to give the industry the benefit of the doubt.
There is hope, however, that banks will worldwide have to begin putting measures in place to deal with crypto transactions in light of Facebook’s upcoming token. Because the token will be used so widely across the world due to Facebook’s influence many banks are already preparing themselves ahead of time by having discussions with people from Facebook about the matter. Hopefully, come out this will bring in a new dawn or acceptance of crypto by banks and other financial institutions across the globe.