Crypto Debanking Continues Despite Trump's Stance: Unicoin CEO
Crypto Debanking Persists Despite Trump’s Pro-Crypto Push, Says Unicoin CEO
Despite President Donald Trump's vocal support for the crypto industry, some companies are still experiencing difficulty accessing traditional banking services. Alex Konanykhin, CEO of Unicoin, reports that U.S. banks continue to close crypto firms' accounts without providing explanations.
Crypto companies have faced account closures and service denials for years, a practice often labeled 'de-risking.' Many within the industry view this as a deliberate effort to suppress digital assets, sometimes referred to as 'Operation ChokePoint 2.0.'
While Trump's campaign and early policy moves suggested a more favorable environment, recent incidents indicate the problem remains. Andreessen Horowitz partner Alex Rampell recently warned of 'Operation Chokepoint 3.0,' where big banks allegedly hike fees for fintech and crypto apps to access data or transfer funds.
Konanykhin told Cointelegraph that US banks are continuing to close accounts for crypto firms without explanation. “We know about it first-hand, as Unicoin and its subsidiaries have been de-banked, without explanations, by several banks,” Konanykhin said. He stated that Citibank, Chase, Wells Fargo, City National Bank of Florida, and TD Bank have all cut ties with Unicoin or its subsidiaries in recent years. Cointelegraph reached out to these banks for comment but has not received a response.
Large-Scale Operation Alleged
Konanykhin claims Unicoin was debanked by four banks this year alone, suggesting a large-scale nationwide operation. Unicoin is a publicly reporting corporation with six years of audited financials and over 4,000 shareholders.
He added that the debanking campaign has created “highly disruptive and damaging” conditions for crypto companies in the US. This deprives them of essential financial services, effectively “suppressing the American crypto industry.”
President Trump is expected to sign an executive order directing federal regulators to identify and penalize financial institutions engaged in debanking.
Konanykhin hopes Trump's order will offer relief. “The President knows the pain of de-banking first-hand and seems determined to stop this form of economic warfare against American businesses,” he stated.
He believes ending debanking could help the U.S. crypto industry regain global leadership. “Ending the War on Crypto will boost the American crypto industry. It may become as impactful internationally as Hollywood is in entertainment or Silicon Valley in IT,” he noted.
Regulatory Hurdles Remain
Elizabeth Blickley, a partner at Fox Rothschild, notes that while Trump is pushing for crypto integration into mainstream finance, meaningful change depends on the final wording of regulations and laws. The recently signed Genius Act, which tasks the Federal Reserve’s Stablecoin Certification Review Committee with designing a regulatory framework within 180 days, is one such example.
Blickley warned that most bills in Congress never pass and that any eventual legislation will likely face legal challenges. She stated, “A regulation may facially comply with the President’s request or a law passed, yet have little application or disproportionate impacts based solely on word-choice.”
Blickley concludes that banks will likely maintain a risk-averse approach to crypto until new rules clearly mitigate perceived risks. “It’s all about making risk-averse entities and people feel like crypto is less of a risk,” she said.