British startups working with Blockchain are struggling to access banking services.
British banking services are difficult to access for Blockchain startups, according to a report by the U.K Financial Conduct Authority, which manages the regulation of the new type of direct market companies.
Some start-ups working with Blockchain would have been denied the opening of a traditional bank account.
The report quotes no name, bank or startup.
The report states:
“We have witnessed the denial of basic banking services for a number of companies. The difficulties were particularly acute for companies wishing to create a DLT, become payment institutions or become electronic money institutions. “
Startups working with Bitcoin or other cryptocurrencies already had big problems accessing banking services.
The fact that these problems now extend to companies working with Blockchain or DLT (Distributed Ledger technology) is a new phenomenon and quite remarkable.
It should also be noted that the policy applied by banks, varies from one institution to another.
The FCA report goes on to say:
“We are concerned about what appears to be general denials for certain types of applicable businesses. There are also inconsistencies among individual banks in how they apply their evaluation criteria to approve access to banking services. “
In their defense, the banks said they were worried about the possibility of money laundering and terrorist financing offered by the new technology.