Brian Armstrong, CEO of Coinbase, called the current U.S. anti-money laundering (AML) regulations an economic disaster. He stated that these regulations cost the global economy $213 billion each year while failing to prevent criminal activity.
Brian cites a report from the United Nations, revealing that only 0.2% of illegal transactions are intercepted. "Sounds like a job for Elon Musk's Department of Government Efficiency (DOGE)," Brian jokes.
He exposed the root cause of the widespread 'debanking' phenomenon: regulators have tasked financial institutions with enforcing anti-money laundering laws. Banks risk fines in the nine or ten figures if they make mistakes. This makes them extremely cautious, pushing legitimate businesses and individuals completely out of the banking system.
The cryptocurrency industry stands united against banking rollbacks in the U.S.
As we reported just a day earlier, Charles Hoskinson, co-founder of Cardano and Ethereum, also spoke out against the coordinated attack on cryptocurrency. He took to X (formerly Twitter) to warn the community that the crackdown is truly worse than anyone thinks.
"A lot of people have their heads in the sand for political reasons," he wrote. "It’s worse and more global. Many businesses have been harassed, fined, audited, and removed from platforms."
Charles links the current situation to Chokepoint 2.0, a modern version of the controversial Obama-era program aimed at cutting off banking access to industries deemed high-risk. At that time, it was payday loan companies and gun dealers. Today, it is blockchain companies.
While the Chokepoint Campaign officially ended in 2017, those in the cryptocurrency industry claim it was resurrected in 2021, this time focusing on stifling the growth of decentralized finance (DeFi).
Gabriel Abed, president of Binance, shared his own horror story. His accounts at First Citizens Caribbean Bank—accounts he had maintained for over a decade—were suddenly closed. What was the reason? He received a deposit related to Bitcoin.
Abed stated that the bank's CEO admitted they feared damaging relations with their U.S. correspondent banks. Global banks are severing ties with cryptocurrency companies to comply with "standards" set by American partners.
Charles urges the community to unite and push for legal changes. He warns: "We only have a short time to pass the law."