Yigit Taha OZTURK 
Documents released on Dec. 6 revealed that the Federal Deposit Insurance Corporation (FDIC) asked banks to pause crypto-related activities.
Risks Between the Crypto Sector and Banking Systems
The cryptocurrency industry faced the threat of being excluded from traditional banking systems under Operation Chokepoint 2.0. Jason Lau, Chief Innovation Officer at the crypto exchange and self-custody wallet provider OKX, emphasized that building strong relationships with banks and financial stakeholders serves as a strategic safeguard against debanking threats.
Lau highlighted that the traditional financial world is heavily based on trust and that building relationships with banking institutions, financial regulators, and other stakeholders is essential to maintaining strong partnerships. In an interview with Cointelegraph, Lau stated:
“You need to take the time to build relationships with all your stakeholders, including regulators and your banking partners. We’ve spent years and years working with our partners and stakeholders to make sure they understand our business.”
The Global Problem of Debanking
Many Operation Chokepoint 2.0 debanking cases originated in the United States and involved US-based entities. However, debanking continues to be a global issue with implications for business, technological innovation, and freedom of speech.
For instance, Ben Rose, the former regional manager of Binance Australia, claimed that the exchange was given only 12 hours’ notice before being debanked. The debanking, which occurred in the middle of the night, reportedly came without a clear explanation.
Debanking Cases in the United Kingdom
In July 2023, leaked documents revealed that UK politician Nigel Farage was debanked due to his political views. This led the UK government to propose revoking banks’ licenses if they violate freedom of speech.
The UK government laid out the following consumer protection provisions for banks:
- A three-month notice to customers before account closures,
- An explicit reason for account closure,
- An opportunity to appeal the closure.
In 2023, crypto companies in the UK also reported being turned away by banks. Common issues included excessive paperwork, frozen accounts, and rejected applications without sufficient explanation.
As of 2024, crypto firms and projects continue to face similar challenges.
Debanking gained widespread recognition in online platforms and digital culture, earning a spot on the 2023 Collins Dictionary’s Word of the Year shortlist.
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