Bitcoin Entrepreneurs Facing Tough Climb Setting Up Bank Accounts
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While Bitcoin might be the hottest currency around right now, companies looking to accept the virtual money are having a hard time with one key aspect: setting up a bank account.
The WSJ said earlier that banks have avoided doing business with companies that accept virtual currency because the businesses might be able to run afoul of anti-money-laundering laws or be involved in illegal activity.
Bank accounts would be required for the Bitcoin exchanges and businesses to accept payments from customers.
Now, young companies the do business with Bitcoin are aiming to avoid having the word mentioned in their name in order to avoid attracting any unnecessary attention.
Recently, the Office of the Comptroller of the Currency said,
While most larger financial institutions are unlikely to accommodate Bitcoin anytime soon, small regional bank's like Silicon Vally Bank in California are more open to the currency and have established separate due-diligence practices in the process.
After starting out 2013 around $20, Bitcoin has been volatile in recent weeks, trading over $1,000 before settling around the $550 to $650 range.
The WSJ said earlier that banks have avoided doing business with companies that accept virtual currency because the businesses might be able to run afoul of anti-money-laundering laws or be involved in illegal activity.
Bank accounts would be required for the Bitcoin exchanges and businesses to accept payments from customers.
Now, young companies the do business with Bitcoin are aiming to avoid having the word mentioned in their name in order to avoid attracting any unnecessary attention.
Recently, the Office of the Comptroller of the Currency said,
Banks make their own decisions on which customers to accept, but areas like virtual currency that present heightened risk require heightened risk-management and controls.
While most larger financial institutions are unlikely to accommodate Bitcoin anytime soon, small regional bank's like Silicon Vally Bank in California are more open to the currency and have established separate due-diligence practices in the process.
After starting out 2013 around $20, Bitcoin has been volatile in recent weeks, trading over $1,000 before settling around the $550 to $650 range.
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