Looking at the state of the blockchain in 2018, we have to ask ourselves - is crypto banking the unbanked or unbanking the banked?

Following the incredible bull run of 2017, which attracted unprecedented attention towards Bitcoin and other cryptocurrencies, 2018 was marked by an equally forceful regulatory backlash. While Bitcoin remains legal in most OECD jurisdictions, the crypto market and its participants are being increasingly penalized for using the digital assets of their choice.

In some countries, including blockchain industry hubs such as the USA and Israel, banks may block users’ access to their fiat bank accounts if they deposit liquidated funds from crypto exchanges and trading venues. This has led to a situation in which vendors that used to accept Bitcoin have backpedaled from their decision to do so, in order not to jeopardize their businesses.

These draconian measures are not always government led, but originate in most cases from the unwillingness of banks to serve their clients according to their needs. Financial institutions will often cite Anti-Money-Laundering guidelines to justify their actions. Although tracking Bitcoin and most cryptocurrencies is much easier than tracking cash, most banks will treat them as untraceable “dark money” and refuse to come anywhere near them. If this is due to a lack of understanding, fear of competition or good-old laziness remains anyone's guess.