Locked Out of Finance? Crypto Could Be the Key

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Millions of people worldwide remain unbanked or excluded from traditional financial systems. Vasily Nikonov, founder of Velvet Capital, believes that cryptocurrency could be the key to bridging this gap and creating a more inclusive financial world.

During a discussion on Roundtable, host Rob Nelson highlighted the challenges many individuals face when trying to access mainstream financial services. Legal status, lack of documentation, or a limited financial history can prevent people from opening bank accounts or investing in traditional markets.

“Clearly, you want to make these products and platforms accessible to as many people as possible,” Nelson said. “There’s a group of people out there—some in legal gray areas—who want to turn things around but simply can’t get into the system.”

Crypto vs. Banking Restrictions
Nikonov pointed out that financial exclusion doesn’t always mean wrongdoing. “There’s a clear difference between criminals laundering money and everyday people facing barriers just for using crypto,” he explained. Velvet Capital, like many crypto platforms, uses transaction monitoring to block wallets linked to illicit activity, ensuring compliance with regulations.

However, he noted that banks often block crypto users without cause. “In the U.S., if a bank notices frequent crypto transactions, they can freeze your account—even if you’re doing nothing illegal,” Nikonov said. “These individuals aren’t criminals, yet they’re unfairly shut out of the financial system.”

Leveling the Investment Playing Field
Aly Madhavji, founder of Blockchain Founders Fund, believes cryptocurrency can bypass outdated financial restrictions that prevent people from investing.

“This is a global industry that levels the playing field,” he said. “Take accredited investor rules, for example. In the U.S., even someone with a master’s degree might be ineligible to invest in certain opportunities simply because they don’t have a million-dollar net worth. That’s absurd.”

Madhavji argues that true financial inclusion means reducing government-imposed restrictions and ensuring access to education and investment tools. “Why should the government dictate every financial decision? Crypto offers a more open, fair, and effective system.”

The Fight Against ‘Debanking’
Crypto founders are also facing pushback from traditional banking institutions. Marc Andreessen has warned of “Operation Choke Point 2.0,” a supposed crackdown on crypto and other politically disfavored industries by cutting off their access to banking services.

The original Operation Choke Point (2013-2017) targeted industries like gun shops and marijuana dispensaries by pressuring banks to deny them services. Andreessen and other critics, including Tesla CEO Elon Musk and Coinbase CEO Brian Armstrong, argue that the revived effort is now targeting crypto startups, threatening financial freedom and innovation.

As governments and banks wrestle with the rise of digital assets, the battle between traditional finance and crypto continues. But for millions worldwide, cryptocurrency represents not just an alternative, but a long-overdue solution to financial exclusion.

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