Bank of America: No Randomly Closing of Coinbase Accounts Confirmed

• Coinbase CEO Brian Armstrong ran a poll on Twitter to assess whether Bank of America (BoA) is closing accounts that transact with the exchange as alleged.
• The recent vote was prompted by Muneeb Ali’s claim that his bank account was abruptly closed after being active for 15 years.
• Regulators have taken strict action against the crypto industry, causing banks to become more cautious about working with crypto companies like Coinbase.

Poll On Bank of America Closing Accounts

Coinbase CEO Brian Armstrong ran a poll on Twitter on July 13th to assess whether Bank of America (BoA) is closing accounts that transact with the exchange as alleged. With over 13,100 responses, 8% said their accounts have been closed while most deny this claim voting ends in 11 hours when writing on July 13th.

Bank Account Closed After 15 Years

The vote was prompted by Muneeb Ali’s claim that his bank account was abruptly closed after being active for 15 years. He appears to blame his interactions with Coinbase as a reason, even though crypto is legal in the United States and compliant accounts can have their crypto transactions processed by banks.

Regulatory Scrutiny Over Crypto Firms

Since the crypto winter of 2022, regulators have been taking strict action against the industry leading banks to become more cautious about working with crypto companies like Coinbase such as Binance US and Coinbase who were sued by SEC for facilitating trading of crypto securities early June this year.

Mainstream Financial Powerhouses Prefer Coinbase Rails

Nevertheless mainstream financial powerhouses including BlackRock prefer Coinbase rails to custody funds due to PayPal payment processor’s partnership and Grayscale digital asset management’s ETF application to SEC details which shows spot bitcoin exchange-traded fund (ETF).

Conclusion

Although there are reports Bank of America not randomly closing accounts of Coinbase clients but due to regulatory scrutiny and uncertainity around cryptocurrency transactions, major global banks are wary of dealing with cryptocurrency firms.