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Opalesque Geneva:

In a new research report called 'The Debanking Dilemma', the Alternative Investment Management Association (AIMA) has issued a call to address the systemic barriers faced by crypto-focused hedge fund managers in accessing essential banking services. These challenges threaten to suppress innovation and undermine the competitiveness of the US digital assets sector.

The findings are based on a survey of 160 crypto hedge fund firms and control groups of 20 traditional alternative investment managers and 40 crypto technology firms.

While none of the traditional alternative investment managers have lost or been denied banking services for their funds or management companies, three-quarters of crypto hedge fund firms reported issues with accessing or growing banking services for their funds over the same period, and 67% reported issues with accessing or growing banking services for the investment manager. This disconnect of access to basic cash management services raises serious concerns about inclusivity in the financial system, the association says.

Key findings from AIMA's survey:

• High rejection rates. • Unexplained denials: 98% of crypto hedge fund firms that were notified their banking relationship might be terminated were given no clear reason. • Broader impacts: The de-banking of these busine......................

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