Bitcoin Hedge Fund Loses Bank

Dec 2 2014 | 11:53am ET

HSBC has decided it wants nothing to do with a bitcoin hedge fund.

The bank has cut ties with Global Advisors, which claims to be the world’s first regulated bitcoin fund, and closed its accounts. HSBC reportedly told the Channel Islands-based firm that it was concerned about the money-laundering risk posed by the controversial digital currency.

“We don’t take the commercial decision to end a customer relationship lightly, and when we do so it follows careful consideration of that relationship in light of our strategic focus or global risk-management standards,” an HSBC spokesman told the BBC.

Global Advisors said it had gone with HSBC after no bank on the island of Jersey would service it. The firm told the BBC it has since found a Jersey bank to work with, but founder Daniel Masters said HSBC’s decision was a “step in the wrong direction for Jersey.” The firm insists that both its fund and bitcoins are sufficiently regulated.

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