Wise Continues Crypto Crackdowns Despite Announced Stablecoin Pivot

Despite planning a pivot to crypto, Wise is continuing to maintain draconian Web3 policies. Earlier today, it banned an educator’s account despite a lack of actual token transfers.

Users have been complaining that the company is heavy-handed throughout the year, comparing its policy to Operation Choke Point. This dismal reputation might impair its ability to compete in Web3.

Can Wise Adopt Crypto?

A few days ago, Wise, a leading fintech firm specializing in international money transfers, announced that it’s looking for crypto specialists. The firm put out a job posting for a Product Lead for digital assets, hoping to “build the future of finance at Wise.”

However, despite the ostensible pivot towards crypto, the firm is still very hostile. Earlier today, a Web3 education firm posted that its Wise account was closed for violating the company’s acceptable use policy, even though this educator didn’t have anything to do with trading digital assets:

In other words, old habits die hard. Wise clearly states on its website that its customers cannot purchase, accept, or trade crypto in any fashion.

This includes even indirect contact like sending or receiving funds “on behalf of” crypto traders, and the firm even claims that it might close accounts for other reasons that “exceed [its] risk tolerance.”

A Toxic Reputation

Wise claims that there are possible exceptions, like receiving a fiat salary from a Web3 business. As the above example shows, however, that doesn’t always apply.

Throughout the year, community members have been complaining that Wise would abruptly freeze their accounts, comparing it to Operation Choke Point and state-led debanking.

In other words, this spurned educator is particularly valuable for two reasons. It highlights that Wise is very hostile to crypto, and that this hostility isn’t letting up.

Even though the firm is actively trying to “explore how customers can hold digital assets within their Wise account,” the crackdown continues unabated.

For a company that’s involved in cross-border payments, Web3 seems like a logical expansion. These transactions are a major driver of global crypto use, powering grassroots adoption on several continents. However, Wise hasn’t conducted a crypto pivot yet.

As long as the firm’s crypto crackdown continues, it’s hard to imagine how it could enter the space successfully. Rapid Web3 growth requires community hype, and a toxic reputation won’t do Wise any favors.