Yes, $2 Trillion was laundered by regulated banks last year according to a recent report, yet banks remain resistant to offer banking services to firms involved in Cryptos.Despite claims that 90% of all US$ banknotes have traces of Cocaine on them, banks and regulators still believe those in our society that want to carry out nefarious activities are using Crypto, not cash. But why would someone carrying out a criminal activity want to use a form of payment that leaves a digital footprint - a Crypto, when cash leaves no traces and banks seem to still be accommodating these activities?
Since 2008 banks have been fined over $26Billion JUST for KYC/AML non-compliance, with the USA regulator being the most active. While in Europe the UK’s FCA has imposed the largest number of fines. It is no surprise that many claim the current system needs to change, and while it was refreshing to see the FCA being proactive creating the FCA sandbox in 2016 where it allows regulated companies to trial new technology, which hopefully can improve the robustness of the financial system, more recent moves have called their ongoing commitment to innovation into question.
