Banking giant HSBC has terminated its services to Global Advisors (GA), the world’s first fully regulated Bitcoin hedge fund.

In an interview with the British Broadcasting Corporation (BBC), GA’s director, Daniel Masters, claimed that his company’s account with HSBC was closed over money laundering concerns. Mr. Masters added that the move is a “step in the wrong direction for Jersey”.

The remark is probably directed at the state government’s efforts to encourage financial technology related enterprises to establish a presence there. New Jersey’s lawmakers have even been observed traveling to Bitcoin-related conferences around the world to promote the state’s crypto-friendly policies. The state has also established a private company called Digital Jersey to spearhead its marketing activities.

GA, which manages the Global Advisors Bitcoin Investment Fund (GABI), has been certified by the Jersey Financial Services Commission in August this year.

A HSBC spokesman has refused to comment on the specifics of the case, citing company policy. However, he noted that the company had identified “a number of relationships” which had failed to meet its “strategic criteria” or “global risk management standards”.

GA has nevertheless managed to secure another Jersey-based bank for its banking requirements.

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