Regulatory pressure has been a thorn in the side of various industries over the years, a phenomenon bitterly felt by both the adult and crypto sectors. The increasingly intertwined worlds of digital currency and adult entertainment have been facing a growing wave of scrutiny and skepticism from regulatory bodies and financial institutions alike.
In years bygone, cryptocurrency had figured as a key payment method for sex workers, who often found themselves spurned by traditional banking systems. Digital assets like Bitcoin was particularly appealing due to its peer-to-peer transaction system and non-reversible payments. This was an effective workaround for people within the adult industry, who were often targeted with financial restrictions by centralized financial institutions.
However, this cryptocurrency haven seems to be facing an uphill battle. Many adult industry professionals are finding digital wallets and crypto exchanges turn their backs, much like traditional banks had done earlier. Moreover, these crypto platforms, despite their claims of permissionless and censorship-resistant transactions, have succumbed to regulatory pressure, implementing thorough know your customer (KYC) and anti-money laundering (AML) protocols. This has led to certain professionals finding themselves quickly blacklisted on these platforms.
Crypto-centric platforms like SpankPay and WetSpace, innovatively designed to bridge the gap between the adult industry and the crypto world, are also encountering challenges in securing banking partnerships. This somewhat echoing the plight of the larger crypto industry, facing resistance from banks, as they receive regular advisories from entities like the Federal Reserve about the inherent risks of the sector.
It’s worth noting, however, that such roadblocks may not be exclusively a crypto or adult industry issue. Instead, they seem to be a manifestation of a systemic agenda against certain industries. This ongoing financial clampdown has unofficially been dubbed “Operation Chokepoint 2.0”, an apparent echo of a similar strategy deployed during the Obama administration, which actively discouraged banking support for industries such as pornography.
What’s certain is, as industries evolve and technology disrupts, the battle lines between regulatory adherence and industry freedom will continue to be blurred. And until a more inclusive model emerges to incorporate these industries into the financial mainstream, this ongoing tug of war could be the norm. Will financial regulators and industries find common ground or continue their financial fencing? Only time will tell.
Source: Cryptonews
