Blockchain Association Requests FOIA to Uncover Cryptocurrency “De-Banking” Situation

03/17/2023 20:44 • Metaverse Matters • 132 views

According to reports, the Blockchain Association, one of the cryptocurrency lobbying groups, has sent a Freedom of Information Act (FOIA) request to the Federal Reserve, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation (FDIC) to provide documents and communications related to cryptocurrency “de banking.”. It is reported that the requirements of the Freedom of Information Act are aimed at uncovering the truth behind the possibility of US cryptocurrency companies going to banking business, including more understanding of the situation where legally compliant cryptocurrency companies may close accounts.

The Blockchain Association requires FDIC and the Federal Reserve to disclose documents related to encrypted “de banking”

Analysis based on this information:

The blockchain association, a cryptocurrency lobbying group, has taken a significant step in finding the truth behind the sudden and increasing number of “de-banking” situations in the United States. Last week, the association submitted a Freedom of Information Act request to the Federal Reserve, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation, which asked for copies of all documents and communication related to cryptocurrency “de-banking.”

The request aims to shed light on the situation and understand the reasons behind the closure of accounts of legally-compliant cryptocurrency companies. The blockchain association seeks to explore the underlying motives behind the banks’ decision to cut ties with their cryptocurrency customers, which have become a popular financing and income source for many companies in the last few years.

Cryptocurrency companies often find themselves being hit with account closures from banks, requesting them to move their accounts elsewhere. Such a situation may not necessarily include any allegations of fraud or illegality, which raises questions about the banks’ motives behind their actions. As a result, many cryptocurrency businesses have faced major difficulties in securing financial services, creating an unnecessary barrier to their functioning and growth.

The blockchain association requests the FOIA to investigate issues of transparency and to gather information on the matter. Transparency will help establish a better structure for the cryptocurrency industry and reduce the regulatory barriers, which has been the primary issue cryptocurrency businesses face. Hence, the FOIA request is about creating a comprehensive regulatory framework that specifically addresses the cryptocurrency industry, its challenges, and its structure requirements and help resolve discrepancies between regulators and existing businesses.

In conclusion, the FOIA request submitted by the blockchain association represents a positive step towards getting more transparency, which will help create a regulatory framework for the cryptocurrency industry. Clarification of the US laws, rules, and regulations for cryptocurrency advocates will only happen through transparency and regulation collaboration initiatives. A secure and transparent way to handle transactions would allow the industry to thrive, thereby, opening new financial opportunities for individuals and establishde companies alike.

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