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Mega bank HSBC has reportedly decided to cut ties with a hedge fund that’s planning to bring the first regulated bitcoin investment fund over concerns of money laundering, BBC reported Monday.
Mr. Daniel Masters of Global Advisors (the hedge fund in question) has said that this situation threatens plans to make the Island of Jersey (where the fund is based) a place where cryptocurrency businesses can flourish, adding that HSBC’s decision in the matter is a “step in the wrong direction for Jersey.”
The fund is called the Global Advisors Bitcoin Investment Fund, or GABI.
Meanwhile, HSBC told the BBC that ending a client relationship isn’t ever done “lightly” — and many in the digital currency community are — no surprise — outraged at the development.
“This is the definition of irony, HSBC is worried about money laundering,” wrote one user on social sharing website Reddit.
“GABI is highly and fully regulated. HSBC citing concerns over money laundering seems desperate; there are no such worries. It’s extremely tempting to consider this a move to eliminate a promising competitor in the investment field,” another adds.
If you ask HSBC about the matter, however, they’ll tell you that they did a great deal of looking into the matter, and as such, this is the right decision from their point of view.
Unfortunately, they haven’t elaborated, nor do they plan to.
As for the Global Advisors Bitcoin Investment Fund, they’ve found another bank on Jersey, but according to the BBC, their banking is not done on the island.
Source: BBC
