Coinbase CEO Brian Armstrong has taken to social media to address concerns about Bank of America allegedly freezing accounts associated with transactions on the popular cryptocurrency exchange. Armstrong launched a poll on Twitter after Muneeb Ali, co-founder of blockchain firm Stacks, claimed that his personal bank account was closed after 15 years due to his use of the account for Bitcoin transactions with Coinbase.
The poll, which received over 8,500 responses, revealed that around 9% of respondents had their accounts closed by Bank of America due to transactions involving Coinbase. However, approximately 20% responded no, indicating that they did not experience any account closures.
The increased caution from banks when it comes to engaging with cryptocurrency firms is attributed to various factors. These include significant value fluctuations in the crypto market, instances of digital asset failures, and stricter regulatory measures.
Despite the recent lawsuits by the U.S. Securities and Exchange Commission (SEC) against major crypto players Binance and Coinbase, investors holding Coinbase stock have experienced impressive growth. In fact, the stock price of Coinbase (COIN) surged by 16% on July 11, surpassing $91.
Over the past month, COIN stock has shown remarkable growth, increasing by 65% despite the SEC’s lawsuit against the exchange in early June. During this period, the stock price rallied from $50 to over $85.
As the crypto industry continues to face regulatory challenges and scrutiny, banks are becoming more cautious about their involvement with cryptocurrency businesses. This skepticism is evident in the alleged account freezing by Bank of America, which has prompted Coinbase CEO Brian Armstrong to seek answers and gauge the extent of the issue through his Twitter poll.
The results of the poll indicate that a significant number of Coinbase users have experienced account closures by Bank of America, raising concerns about the potential impact on individuals’ financial activities. It remains to be seen how the situation will unfold and whether other banks will follow suit or take a different approach to handling cryptocurrency-related transactions.
Overall, the crypto industry continues to evolve, facing both opportunities and challenges. While Coinbase stock has shown impressive growth despite regulatory issues, it is clear that there is still work to be done to address the concerns of banks and regulators in order to establish greater trust and acceptance in the mainstream financial system.
