is debanking targeted at crypto entrepreneurs

?

Debanking, in the context of the crypto industry, refers to the practice of banks and financial institutions severing ties or limiting relationships with cryptoasset businesses and individuals involved in the sector. This phenomenon is indeed targeted at crypto entrepreneurs and businesses, driven by perceived risks such as fraud, money laundering, and terrorist financing, as well as regulatory and reputational concerns.

Several key points from recent discussions and legal actions highlight this trend:

1. **Regulatory Pressure**: Financial regulators have been pressuring banks to cut off crypto companies from the banking system, a practice sometimes referred to as "Operation Chokepoint 2.0." This effort is aimed at stifling the crypto industry by denying it access to traditional financial infrastructure[2][5].

2. **Legal Challenges**: Companies like Coinbase have sued regulatory bodies like the Federal Deposit Insurance Corporation (FDIC) over efforts to debank crypto companies, accusing them of illegal practices in pressuring banks to sever ties with the crypto industry[5].

3. **Bipartisan Concerns**: There is growing bipartisan concern about the regulatory environment for digital assets, with former Solicitor General Donald B. Verrilli accusing US regulators of intentionally stifling the crypto industry through debanking practices[3].

4. **Industry Impact**: Debanking has significant implications for the crypto sector, driving innovation offshore and forcing crypto startups to operate in a fragmented and inefficient manner. This trend is seen as a threat to the industry's development and its ability to thrive[2].

5. **Broader Context**: Debanking is not limited to the crypto industry but reflects a broader regulatory strategy that has been used against other industries deemed high-risk or controversial, such as marijuana dispensaries and gun shops[2].

In summary, debanking is indeed targeted at crypto entrepreneurs and businesses, driven by regulatory pressure and concerns over perceived risks, with significant implications for the industry's growth and innovation.

Michael Hudson’s ‘Gravity’ was debanked multiple times as far as I remember and finally forced out business. Such a shame as it was a fantastic service for converting between crypto and fiat in the EU.