Today, the UK and HSBC announced the open shot across the bow to Crypto, these two, country and bank have placed restrictions on Crypto within their purview.
Janet Yellen as pending Treasury Sec and Jay Powell as Chairman of the U.S. Fed unveils private banking interests directly into Government.
China is launching a Crypto currency largely viewed as a challenge to the US $ and linked to long term plans like Belt and Road.
Banks world wide have several challenges. Example: Low interest rates equates to smaller spreads that impact their profits.
In 2020 prior to Covid and having worked at CA and Asian banks, I have noted many Advisors and specific policy focused on retaining clients based on fees, and greater restrictions to selling ONLY banks products i.e. Mutual Funds, ETFs etc. which is neither in the investors interest nor fiduciary.
Next, as funds flow into Crypto, we are moving from early Smart Money to Institutional and this is viewed as a threat as $100 Millions of funds flowing from these Banks fees and products and out of their control.
A personal story, three friends had fund transfers blocked by several large Tier One banks. The banks rather oddly asked "where the funds where being reallocated?" In three cases it was a Private Placement, in the others it was transfers for Crypto. Point: banks don't like large outflows and often use government anti- laundering policies to infringe on personal financial privacy.
To be fair, these same banks do allow smaller amounts ($10000 / week) to be transferred directly to several Crypto exchanges.
Taking on a Banks perspective, one can understand that no bank wants loss of fees nor large money outflows. Add in Governments concerns from taxing capital gains on Crypto, we go full circle bank to Janet and Jay and future US Government, Fed to bank policy.
Last Big thoughts, China, Russia through the IMF are all challenging global financial systems. Demographics of politicians and senior bankers from my seat are grey haired, ignorant of Crypto, Stable coins etc and fearful. The US as the current system, $US dollar etc is very behind on Crypto. The proposed banking and CA, EU policies seem to try to balance; for now they appear to target mid level and not large institutions. The discussion; largely focuses on underfunded to funded liabailities, Pension funds; the need of Crypto (within an upcoming ETFs), due to, full circle back to low yields / rates, needed because of Household, Corp, State debt levels.
A delicate balance of interests; Bank profits, managing the ballooning long term debt cycle with low yields rates and the "Boomers" are in charge.
Future Food for thought!