Cryptocurrency could turn to shadow banks amid the ongoing banking crisis, Molly White, software engineer and crypto skeptic, said at a recent event.
At the South by Southwest (SXSW) panel in Texas, White told the audience that ongoing crises linked to Silvergate Bank and Signature Bank could potentially derail cryptocurrency firms.
She explained that there were only a “handful of US banks” supportive of cryptocurrency clients, adding: “With Signature and Silvergate both out of the picture, I think that’s going to be very impactful on the crypto industry [which] still really needs access to traditional finance and to U.S. banking rails.”
White added that without the two banks, the crypto industry would have a “tough time.”
“They’re either going to have to find other banks that are willing to work with them, which was already tough, and will probably only be tougher after the collapses of these banks, or they’re going to have to turn to some of the sort of shadier shadow banks,” she concluded as quoted by Cointelgraph.
The news comes after New York authorities cracked down on Signature Bank, sparking outcry over the New York Department of Financial Services’ jurisdiction.
Over the last few months, the SEC and numerous US agencies have cracked down on global cryptocurrency firms such as CoinEx, Binance, Kraken, Ripple, and KuCoin, among others.
