Cardano’s Charles Hoskinson calls Operation Chokepoint 2.0 a global attack on the crypto industry.
Crypto entrepreneurs face debanking issues amid Operation Chokepoint 2.0, leading to financial damage.
Industry leaders urge unified action to prevent politically motivated crypto suppression and protect rights.
Cardano founder Charles Hoskinson has criticized Operation Chokepoint 2.0 calling it a deliberate attack on cryptocurrency. For instance, in a recent post on X, Hoskinson explained how the operation is affecting businesses and investors in the global cryptocurrency market. He explained that the campaign uses fines, audits, and service denials to disrupt cryptocurrency-related activities.
Hoskinson stressed that the operation extends beyond the United States. He stated that global banks avoid working with crypto entities due to fear of repercussions. He explained that with the campaign, many in the crypto-related industries have suffered severe loss of money and emotional stress.
Furthermore, Hoskinson has urged the representatives of different segments of the crypto industry to unite and lobby for legislation that would prevent similar actions in the future. He has also recommended that protective legislation should be secured as soon as possible.
Debanking Issues Affect Crypto Entrepreneurs
Many crypto entrepreneurs have faced challenges due to debanking practices under Operation Chokepoint 2.0. Gabriel Abed, a businessman from Barbados, shared his experience of being debanked. First Citizens Caribbean Bank closed his account after a Bitcoin-related deposit from Kraken. The bank used US correspondent banking relationship concerns as its reasons for coming up with the decision.
Faryar Shirzad, the Chief Policy Officer at Coinbase, also discussed the problem of debanking in the cryptocurrency industry.. He highlighted cases of businesses losing banking access without valid reasons. Shirzad called for greater transparency and accountability in banking practices to protect crypto entities from politically motivated actions.
Ripple CTO Criticizes Indirect Regulation
David Schwartz, Ripple’s Chief Technology Officer, described debanking as a form of indirect regulation that undermines basic legal principles. Schwartz argued that these practices bypass legal processes and restrict fundamental rights such as due process and freedom of speech.
He urged governments to address concerns using legal and transparent measures instead of coercing banks to act against crypto businesses. Schwartz emphasized the need for clear rules to ensure fairness in the financial sector.
Widespread Concerns Over Crypto Regulation
Several other leaders of the crypto industry have also expressed their Concerns over operation chokepoint 2.0. San Francisco-based Frax Finance founder Sam Kazemian stated in November 2022 that his account was closed at JP Morgan Chase. CEO of Coinbase, Brian Armstrong, has resorted to filing FOIA requests in order to expose the government in these actions.
Armstrong called the campaign unethical and linked it to influential figures such as Senator Elizabeth Warren and SEC Chairman Gary Gensler. He stressed the importance of protecting the industry from similar efforts in the future.
Charles Hoskinson and other leaders have called for unity among crypto players to combat unfair practices. They believe lobbying for clear laws and accountability is essential to safeguard the future of the cryptocurrency industry.
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