When your bank suddenly freezes a crypto deposit or refuses to process a withdrawal, it’s not a glitch—it’s policy. banking restrictions crypto, the growing trend of financial institutions blocking or limiting cryptocurrency-related transactions. Also known as crypto bank bans, this isn’t about suspicion—it’s about legal pressure. Starting in 2023 and accelerating through 2025, banks across the U.S., Europe, and Asia have been forced to cut ties with crypto exchanges, wallets, and even individuals who trade or hold digital assets. Why? Because regulators like the FATF and local financial authorities now require banks to monitor every crypto transaction under KYC crypto, rules that demand identity verification for all users engaging with digital assets and AML crypto, anti-money laundering protocols that treat crypto transfers like cash movements. If a bank misses one flagged transaction, it could face fines in the billions—like the $34 billion penalty looming over Upbit in South Korea or Canada’s $40 million seizure from TradeOgre.
These restrictions aren’t random. They’re tied to real enforcement actions. When exchanges like Poloniex or Bitsonic stop serving U.S. or Canadian users, it’s because their banking partners pulled the plug. Even non-custodial platforms like Shadow Exchange or KyberSwap Classic can’t operate if their payment rails are cut. And it’s not just exchanges—individuals who use DeFi protocols or earn tokens through airdrops are seeing their accounts flagged. Why? Because banks can’t verify the source of funds if they come from a wallet with no identity attached. That’s why crypto compliance, the process of following global rules to legally interact with crypto has become non-negotiable. If you’re holding crypto, your bank is now watching. And if you’re using a platform without KYC, like LongBit or AnimeSwap (which don’t exist anyway), you’re not just risking your funds—you’re risking your entire banking relationship.
So what’s left? You can’t ignore it. But you also don’t have to give up crypto. The answer isn’t hiding—it’s adapting. Use regulated exchanges that comply with local rules. Understand that airdrops like CANDY or BABY aren’t free money—they’re tied to verified accounts. And if your bank blocks crypto entirely, consider moving to a credit union or fintech that still supports digital assets. The rules are changing fast, but they’re not impossible to navigate. Below, you’ll find real cases showing how banks shut down exchanges, how regulators enforce compliance, and what you can actually do to protect your access to crypto without getting caught in the crossfire.
Colombia doesn't ban crypto, but its banks are legally blocked from handling any crypto transactions. Learn how this affects users, businesses, and the future of digital finance in the country.