Bank of America, one of the largest banks in the United States, has recently made headlines as it reportedly takes aim at prominent cryptocurrency exchange Coinbase.
According to reports, Bank of America has been closing the accounts of individuals and entities that have engaged in transactions with Coinbase, causing concerns within the cryptocurrency community.
The move has caught the attention of Brian Armstrong, the CEO of Coinbase, who expressed his worries over this development. In an attempt to gauge the scope of the issue, Armstrong reached out to other Bank of America customers to determine whether they had faced similar account closures.
This latest development highlights the growing tension between traditional financial institutions and the rapidly expanding world of cryptocurrencies.
Any other @BankofAmerica customers seeing this? If so, not ok.
See poll below https://t.co/7r4szZK1Te
— Brian Armstrong
(@brian_armstrong) July 13, 2023
Bank Of America Account Closure Sparks Outcry
The controversy surrounding this alleged embargo gained traction when Muneeb Ali, the founder of Stacks, came forward claiming that his personal account, which he had actively used for Bitcoin investments over a period of 15 years, had been abruptly closed.
Ali’s announcement on Twitter ignited a passionate response from the cryptocurrency community, with the affected customer expressing frustration, saying, “This is a war on Bitcoin & crypto.”
So @BankofAmerica just closed my personal bank account that I’ve used for 15 years. No reason given.
Real reason? I do Coinbase transactions through this account for Bitcoin.
This is a war on Bitcoin & crypto. Please RT to warn others. We won’t stay silent.
— muneeb.btc (@muneeb) July 12, 2023
The claims made by Ali prompted Armstrong to investigate whether other users of the exchange had experienced similar account closures. In an attempt to gauge the magnitude of the situation, Armstrong conducted a Twitter poll, which yielded intriguing results.
Out of the 16,701 respondents, 8.9% affirmed that they had indeed encountered account closures, while 19.3% reported no such occurrences.
Has @BankofAmerica closed your account due to transactions with @coinbase? Curious if this is the issue.
— Brian Armstrong
This development has added fuel to the already contentious relationship between traditional financial institutions and the rapidly expanding realm of cryptocurrencies.
Another Choke Point?
If the reports of Bank of America targeting Coinbase users through account closures are accurate, it raises the question of whether these actions are part of an initiative known as Operation Choke Point 2.0.
Coined by crypto venture capitalist Nic Carter earlier this year, the term refers to a deliberate effort by banks and regulatory bodies to limit or deny banking access to industries deemed politically polarizing, including the cryptocurrency sector.
The concept of Operation Choke Point gained prominence when the Comptroller of the Currency, the Federal Reserve, and the Federal Deposit Insurance Corporation jointly issued a statement warning banks about the increased scrutiny they would face if they engaged with cryptocurrencies.
This move was seen as a way to curb the growth and influence of the crypto industry by restricting its access to mainstream financial services.
Featured image from NDTV
