American banks are freezing accounts without explanation

Reportedly few US banks are blocking the bank accounts of customers, which are using banking services for crypto-related activities & other suspicious services.

The United States of America (USA) is a very big market for the crypto sector but in the US jurisdiction, there are no clear rules & regulations for the crypto sector. The United States Securities Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) regulates the crypto sector on behalf of the existing traditional financial rules & regulation.

Recently  CBS Los Angeles reported that huge numbers of Americans are failing to access their bank accounts because banks are blocking their accounts over their association with unintentional suspicious activities.

The report noted that when a person tried to login into his savings bank account via the bank app then he failed and when he reached out to the Bank branch then they told him that they blocked the account and now he can’t access all his life savings.

The victim said that he never used his bank account to transfer money for any type of illegal activities in his life and also the bank is refusing to provide any kind of main information on this matter and in this situation such types of people are facing problems in common life.

A report by Bank of America confirmed that the FBI agency reports nearly 4% of bank accounts linked with suspicious funds transactions so that the Bank can easily block the illegal services but it takes a huge time to solve the whole matter.

Crypto as a solution

Here banks are not blocking the customers for any direct or indirect illegal activities but also targets for their involvement in crypto-related transactions.

This month a few crypto Twitter users reported that their bank account was frozen by the bank because they used it for crypto-related transactions.

Some crypto advocates said that the situation is still in a healthy phase but a very bad phase will surely come in the next few years, after the entry of the digital dollar (American Central Bank digital currency) 

Crypto proponents say it is better to use cryptocurrency, and stablecoin directly as a better payment solution because these are totally decentralized.

Read also: Ripple (XRP) is on the path to secure crypto license approval in the UK