Is Bank of America closing accounts of Coinbase clients?
According to a poll conducted by Coinbase CEO Brian Armstrong on Twitter, a minority of respondents claim to have had their accounts closed by Bank of America for transacting with the exchange. However, this claim has been mostly denied by the majority of voters. It is important to note that crypto is legal in the United States and compliant accounts can still process crypto transactions with banks. The recent account closures may be a result of regulatory scrutiny on Coinbase and increased caution from global banks. Other major crypto exchanges like Morgan Stanley and Goldman Sachs have not reported similar closures. Regulatory authorities in the US have been taking strict action against the crypto industry, leading banks to become more cautious about working with crypto companies. Despite this, mainstream financial institutions like BlackRock and Vanguard continue to use Coinbase Custody to store coins.