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Overcoming Obstacles to Banking Virtual Currency Businesses

May 10, 2016

Virtual currency businesses (“VCBs”) offer an alternative payment rail to traditional banks and financial institutions. In order to operate, though, VCBs themselves rely on banks to conduct fundamental payment, savings, foreign exchange and other financial functions. Banks, as heavily regulated entities, apply certain levels of scrutiny to their potential customers and it is common industry knowledge that certain types of businesses, such as money services businesses, have historically had difficulty establishing relationships with banks.

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