Banks have recently sought to sever their relationship with cryptocurrencies, due to pressure from the US Securities Exchange Commission, especially after the corruption case involving Sam Bankman, CEO of the cryptocurrency trading platform (FTX).
The authority stresses that banks end their relationship with currencies, in anticipation of not repeating the Bankman-Fried case that led to the bankruptcy of the platform. Therefore, major banks have reviewed their dealings in cryptocurrencies, by closing accounts, as well as cancelling their dealings with the trading platforms for these currencies
And cryptocurrency trading platforms can only enter the financial system through banks that deal with real money, and for this reason, cryptocurrency sector companies will not be able to fulfil their obligations to their employees or customers without banks, which they believed would compete with them in dominance over financial transactions.
And the authority pressure was not by forcing banking institutions to sever their association with cryptocurrency companies, but by classifying bank clients from companies that deal in those currencies as high-risk companies.