CCN.COM crypto news site asked several leaders in the cryptocurrency space about their banking service experiences. Not surprisingly it turned out that many of them were not too satisfied with them. Some were prevented from accessing their funds while others lost their accounts, or had to wait for very slow transfers for exorbitant fees.
Changpeng Zhao, CEO of Binance crypto exchange shared on Twitter his first negative experience with the Royal Bank of Canada as a teenager: “I proudly deposit $10, only to find out they charge me $3.99 monthly. A couple months later, I owe them a bunch of money.”
A crypto trader Credible Crypto said the following: “I send international wire transfers all the time. It’s a major pain when I send a wire transfer on Thursday after 1PM it doesn’t reach my suppliers until Monday, which is kind of ridiculous. Also, I get charged anywhere from 30-60 USD in fees.”
Andy Cheung, head of operations at OKEx told CCN: “A negative aspect of traditional banks is that they don’t run 24/7. They have complicated procedures in place and take too much time to process transactions. Many companies need to do business in other countries and settle urgent payments, but traditional banks often delay wire transfers or make it very difficult to wire money to certain countries.“
Some banks have so many customers that they don’t mind losing a customer or two, therefore they can quickly unbank them if they do not like their line of business. Kraken CEO Jesse Powell said that in one case a bank shut down their account with 5 days notice sent by regular mail which arrived the day after the bank closed their account.
Even the former CFO of PayPal recently had his account closed without an explanation after being a customer of Bank of America for 20 years. It’s no surprise that many people are turning to cryptocurrency instead of old, slow and centralized banking service.