Dec 21, 05:41 PM

Survey Reveals 120 of 160 Crypto Hedge Funds Face Banking Challenges Over Three Years Amid 'Debanking' Concerns

A recent survey indicates that 120 out of 160 crypto hedge funds have encountered significant challenges with basic banking services over the past three years. This issue has been termed 'debanking' and has raised concerns within the crypto industry. In contrast, traditional sectors such as real estate and private credit have not reported similar banking problems. The survey highlights that these banking hurdles have affected not only the hedge funds but also their portfolio companies. Analysts suggest that this trend may be a result of systemic issues within the banking sector regarding its relationship with the crypto industry. Additionally, the FDIC has reportedly advised banks to pause dealings with crypto companies, further complicating the situation. As a response, some industry leaders are advocating for stronger relationships with banks and regulators to navigate these challenges.

#FDIC

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