Originally Posted by adultinnovation

Banks do not allow deposits from cryptocurrency exchanges due to the volatility and lack of regulatory oversight in the cryptocurrency market.

Banks are subject to know-your-customer (KYC) and anti-money laundering (AML) regulations, and they cannot risk exposure to potential financial crimes by accepting deposits from unregulated cryptocurrency exchanges. Additionally, the value of cryptocurrencies can fluctuate rapidly, making it difficult for banks to determine the true value of deposits.