US banks shunning bitcoin over regulatory fears

Regulatory constraints likely to continue holding back crypto-currencies

bitcoin

US banks already facing a swathe of regulation are not engaging with bitcoin because they don't want to fight with regulators over it, one legal expert says. Banks' reluctance to open accounts for crypto-currency exchanges is likely to be more about regulators than the banks themselves, says Joel Feinberg, a Washington, DC-based partner in the banking and financial services practice at law firm Sidley Austin. "In the US, and most likely in other jurisdictions, the banks are so heavily regulat