Dossiers
Banks and crypto dossier
The relationship between banks and the crypto sector has shifted: from refusing and closing accounts to cautious entry with their own custody services. This dossier tracks that movement, from retail debanking to the capital requirements supervisors place on bank balance sheets.
Timeline
- Collapse of crypto-friendly US banks disrupts payment rails.
- First major EU banks offer crypto custody under MiCA.
- Supervisors publish capital requirements for bank crypto exposure.
Debanking: why accounts get closed
Anti-money-laundering rules require banks to explain the origin of funds. Transactions to and from crypto platforms demand extra investigation, and that costs money. Some banks take the simplest route: refuse clients with heavy crypto flows or terminate the relationship.
Now that MiCA makes licensed providers clearly identifiable, that calculation is slowly changing. Payments to an authorised firm are far easier to justify than payments to an unknown offshore platform.
- Keep evidence of the origin of your funds
- Prefer licensed, identifiable counterparties
- Explain large transfers to your bank up front if asked
Banks as custodians
A growing number of European banks offer crypto custody under a MiCA licence. For clients that means a familiar environment under banking supervision, but it is not a deposit: custodied crypto is not covered by the deposit guarantee scheme.
Fees are usually higher than at specialists and the asset range narrower. For institutional clients, operational certainty often outweighs that cost.
Capital requirements as a brake
Supervisors require banks to weight unbacked crypto exposure heavily in capital calculations. Holding large positions is therefore expensive, which explains why banks mostly offer services rather than invest themselves.
Fully backed tokens such as regulated stablecoins and tokenised government bonds face lighter treatment, and that is where banking innovation is concentrated.
Frequently asked questions
Can my bank close my account over crypto?
A bank may end a relationship it cannot risk-manage, but must justify it and give reasonable notice. In the Netherlands there is also a right to a basic payment account.
Is crypto held at my bank covered by the guarantee scheme?
No. The deposit guarantee scheme covers euro balances on payment or savings accounts, not custodied crypto.
Why does my bank block transfers to a crypto platform?
Usually internal risk rules or insufficient evidence of origin. Supplying documentation in advance often resolves it.