As global interest in digital assets continues to rise, a growing number of private investors in Canada and abroad are discovering something troubling, their banks are restricting or outright blocking transfers to crypto platforms. While the public explanation often centers on security and risk management, Charles Hewitt, Senior Market Advisor at Bridgemont Equity, believes the real motivation is far more self-serving.
In a wide ranging discussion with Bridgemont’s research team, Hewitt described a pattern he believes is spreading quietly across the global banking system. And at the center of it is a desire to preserve control over capital as more private investors shift toward decentralized markets.
“Banks will never openly admit it,” Hewitt says, “but limiting access to crypto is a way of protecting their own relevance. Every dollar that moves into digital assets is a dollar that leaves their ecosystem.”
A Silent Strategy Taking Hold
Hewitt explains that the restrictions are rarely announced publicly. Instead, investors encounter them during routine transactions, an international wire that suddenly fails, a debit purchase that won’t process, a bank representative insisting that a transfer cannot be completed “for security reasons.”
The pattern is consistent across several countries, but Canada has become a particular hotspot. Major banks have quietly tightened internal controls, making it harder for private clients to fund accounts on well established crypto platforms. While the official reasoning cites concerns such as fraud and compliance, Hewitt sees a deeper motive.
“Banks operate in a world where control and capital are everything,” he explains. “Crypto removes both from their hands. That shift threatens not just their business model, but their influence over the financial system.”
Why Banks Feel Threatened
The rise of digital assets has created a new investment universe where individuals can move capital without relying on banks as intermediaries. Crypto exchanges, decentralized platforms, and blockchain-based services allow investors to access global markets instantly and often at lower cost.
This shift challenges banks in three specific ways. First, crypto platforms offer investors autonomy. They reduce reliance on traditional banking services, from global transfers to long term savings.Second, capital flowing into digital assets is capital leaving the traditional deposit base. Banks depend on deposits for lending and profit. Third, as crypto investment grows, banks risk losing their role as gatekeepers of financial opportunity. Hewitt believes the combination of these pressures has pushed banks toward defensive measures disguised as investor protection.
Private Investors Caught in the Middle
The consequences are being felt most by private investors who seek to diversify their portfolios. Hewitt notes that even well informed, financially stable clients face new hurdles when attempting to move capital into cryptocurrency markets. Some experience repeated transaction denials. Others find themselves questioned by bank staff unfamiliar with modern digital investing.
In several cases, investors have been forced to use workarounds alternative institutions, digital only banks, or international platforms that maintain neutral policies toward crypto. This trend, according to Hewitt, reflects a disconnect between how banks portray the issue and how they behave behind the scenes.
“They speak about safety,” he says, “but their actions suggest they’re more concerned about losing customers to a different financial system.”
The Global Pattern Emerging
This is not a Canadian phenomenon. Across Europe, Australia, and parts of Asia, banks are tightening their restrictions. Some limit daily transfers to crypto exchanges. Others classify crypto purchases as high risk, requiring manual approval. A few have even banned such transactions altogether.
In each case, Hewitt sees a similar pattern, banks responding to the rapid adoption of digital assets with policies that preserve their role at the center of financial activity.
He emphasizes that the strategy is subtle but effective. “They’re not blocking crypto by law,” he notes. “They’re doing it through friction. If you make the process frustrating enough, many investors give up.”
Investors Are Adapting
Despite these challenges, Hewitt believes private investors are becoming increasingly determined to access crypto markets. Many have shifted to institutions with more forward thinking policies. Others are exploring fintech solutions that handle digital assets without resistance from traditional banks.
This shift, he argues, is only accelerating the trend that banks fear most: the migration of capital to decentralized markets.
What Comes Next
Hewitt does not expect banks to reverse course voluntarily. Instead, he predicts increased tension between traditional institutions and the growing crypto economy. Governments may eventually intervene with clearer rules, but until then, he warns private investors to stay informed and prepared.
“Banks built their systems in a world where people had no alternatives,” Hewitt says. “But that world is changing. And they are trying to slow that change.”
For Bridgemont Equity, the takeaway is clear, investors must recognize the structural forces shaping access to crypto and adapt accordingly. The institutions guarding the old system may resist, but the movement toward decentralized finance is not slowing, and private investors are no longer willing to stay confined within traditional boundaries.
Disclaimer: This article is purely informational and doesn’t offer trading or financial advice. Its content is not intended to be investment advice. We do not guarantee the validity of the information, especially when it pertains to third-party references or hyperlinks.
