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The Alternative Investment Management Association (AIMA) has issued a call to address the banking challenges faced by crypto-focused hedge fund managers. According to AIMA's research report, "The Debanking Dilemma," 75% of surveyed crypto hedge funds reported difficulties in accessing or expanding banking services, while traditional alternative investment managers did not face such issues.
AIMA's survey included 160 crypto hedge fund firms and control groups of 20 traditional alternative investment managers and 40 crypto technology firms. The findings revealed that none of the traditional managers lost or were denied banking services, whereas a significant portion of crypto hedge funds experienced access issues.
"The debanking of these businesses negatively affects operational efficiency, investor confidence and talent acquisition," AIMA said. The organization urges collaboration with the new administration, banking leaders, and policymakers to develop solutions for these systemic challenges.
Michelle Noyes, Managing Director and Head of Americas at AIMA, commented on the situation: "The survey data demonstrates the significant challenges the US crypto hedge funds face in accessing basic banking services. AIMA is committed to finding a path forward for the entire digital asset industry that satisfies robust risk management requirements and supports financial inclusion."
John D’Agostino, Co-Chair of the AIMA Digital Assets Working Group, added: "Our data underscores the urgency of this issue. Crypto investment managers... are facing barriers due to systemic underservicing by banks despite having key operational controls in place."
AIMA calls for stakeholder engagement to foster dialogue between policymakers, banks, and crypto industry leaders; proportional risk management from banks; and regulatory clarity for crypto hedge fund managers.