Cryptocurrency might offer the most lucrative and in-demand job opportunities but many financial institutions around the world are still critical of those who work in the Industry. Uniswap founder, Hayden Adams, announced on Sunday that JPMorgan Chase recently closed down all of his bank accounts without prior notice or reason. Adams posted on Twitter about the situation and claims he knows many other individuals who have the same problem.
The problem stems from many cryptocurrency projects paying employees in digital assets. When employees remove their salary from the markets and try to put the funds into traditional banks, they can be flagged as potential cryptocurrency traders and have their accounts locked. While some financial institutions have been more accepting of cryptocurrency transfers, many of the major banks are still putting restrictions and shutting down accounts for being involved in digital currencies.
The reason behind the account closures is dynamic. Some traditional banking systems will require users to go through rigorous KYC and questionnaires before they are approved to deposit or withdraw funds from cryptocurrency exchanges. Other traditional banks will claim the lack of regulation and compliance around cryptocurrencies is the reason they halt their clients from using digital assets. A few banks have no valid excuse and simply hold a bias against digital currencies and will enforce strict rules against digital assets for their account holders altogether.
Many companies in cryptocurrencies have changed their payment systems to be easier for their employees. Many of them will only pay their employees in stable coins to avoid market volatility and price change before they can withdraw the funds. Other companies have opted to use third-party agencies that will pay workers directly in fiat without having a direct connection to a cryptocurrency company.
Many large financial institutions have looked into incorporating cryptocurrencies into traditional banking systems but the payment problem still exists. Banks or payment services like Paypal have added cryptocurrency support but will not enable withdrawals or deposits into these wallets. Instead, they will enable users to purchase or sell cryptocurrencies only through their platforms. This has not helped users who acquire digital assets from third parties or from larger centralized cryptocurrency exchanges.
As the amount of workers in the industry continues to grow exponentially, it is likely we will see more support for cryptocurrency paychecks. Some politicians in the US have even started to accept digital currencies as part of their paychecks already. If this trend continues to grow it is only a matter of time before restrictions and unannounced bank account closures begin to stop.