Binance stopping withdrawals into banks

Binance stopping withdrawals into banks
Photo by Kanchanara / Unsplash

From Bloomberg:

"The ideal of crypto means not having to rely on banks and institutions. But the reality of the industry, at least today, is that many digital-asset companies need traditional finance firms to help provide customers with a reliable on-and-off ramp between their platforms and the world of hard currency. Therein lies a growing problem.

Increasingly, crypto firms are being cut off in the US by banks that are reluctant to process wire transfers for the industry — especially after last year’s turmoil and the growing regulatory scrutiny that has come to bear around the space."

What's wrong with this picture?

So let me get this straight. Crypto was supposed to unshackle us from the current financial system. But I need to use my bank account to fund and withdraw money from my crypto exchange.

It feels like we are right back where we started — relying on third-party financial institutions and all the associated costs and challenges.

Making matters worse is that these same banking institutions seem to be cutting off support for crypto firms, leaving customers without a reliable solution. This poses a huge problem for those who want to access their funds through traditionalwait, I could use a hardware wallet. But then I don't have any liquidity.

So crypto is still waaay outside the range of daily usefulness.