Bitcoin, Trump, and Banking: A New Financial Frontier for the Politically Exposed?

I've been scratching my head lately, wondering why an 80-year-old politician, someone you'd expect to be all about old-school finance, suddenly got so into digital assets. Then it clicked, especially after I read about big banks reportedly turning away Donald Trump as a client. This unexpected clash between powerful figures and traditional banking is really blurring the lines between politics, personal finance, and tech. It's like, can you even keep a regular bank account if you're labeled "high-risk"? This whole "de-banking" thing is quietly changing who gets to play in the financial world, especially for politicians and other public figures who tend to stir things up.

Nigel Farage, Andrew Tate and Donald Trump holding hands outside a Bank. Source: Microsoft Co-Pilot

Honestly, it feels like digital assets are destined to have powerful politicians on their side. Why? Because so many of them are getting pushed out of traditional banking just for being a Politically Exposed Person (PEP). It's not just about financial convenience; it's about maintaining access to the global financial system when the usual doors are slamming shut.

The PEP Problem: Trump's Banking Headache

So, what's a PEP? It's basically anyone who's held a big public job, plus their family and close pals. Banks see them as a higher risk for things like bribery or money laundering, so they have to do extra checks (called Enhanced Due Diligence, or EDD) as part of their Anti-Money Laundering (AML) and Know Your Customer (KYC) rules.

When Donald Trump was out of office after January 6, 2021, reports popped up about major banks backing away from him and his businesses. Banks usually stay quiet about why they close accounts, but it often comes down to a huge jump in legal, reputational, and regulatory risks. For someone as high-profile as Trump, all that public scrutiny and legal drama could easily make banks nervous, making it too risky to keep him as a client.

Now that he is President again, imagine the pressure on those bank compliance committees! They rejected him before, and now they're stuck between following strict rules and dealing with the political and economic fallout of potentially re-engaging with a sitting head of state whom they previously deemed too risky. Talk about a tight spot!

It's Not Just Trump: A Growing Trend

Trump's banking woes aren't unique. It's a wider trend hitting anyone banks see as "high-risk" or "controversial."

Think about the Tate brothers, Andrew and Tristan. These online personalities have publicly shared their struggles getting bank accounts, often linked to serious allegations. Banks simply don't want the reputational hit.

Then there's Nigel Farage, the British politician, who famously fought Coutts bank over his account closure. Internal documents later showed it was about his "perceived reputational risk." These cases really make you wonder: if traditional banks shut you out, where do you go?

It's worth noting that Trump himself has often voiced the sentiment that banking policy, and the de-banking trend, seems particularly geared towards politicians on the Right. He and his allies have suggested that these actions aren't just about financial risk, but also about political discrimination, adding another layer of controversy to an already complex issue. This perception, whether fully substantiated or not, certainly fuels the narrative that traditional financial institutions are becoming increasingly politicized.

Bitcoin: A New Path for the Unbanked?

This is where Donald Trump's surprising shift towards Bitcoin gets interesting. He used to be a crypto skeptic, but since 2021, he's done a 180. NFTs, crypto donations, even a growing fondness for Bitcoin – it all lines up with his reported banking troubles.

For people facing de-banking, Bitcoin and other decentralized cryptocurrencies offer a different route. They operate outside the old-school banking system, meaning no central go-betweens to impose restrictions based on PEP status or perceived risk. This appeal comes from Bitcoin's promise of censorship resistance and financial autonomy. If institutions threaten your financial access, the ability to hold and move money without a bank becomes incredibly powerful.

Bitcoin's Wild Ride Since 2021

Bitcoin's journey since 2021 has been a rollercoaster, but it's shown incredible growth and resilience. Starting around $29,000 in early 2021, it shot past $68,000 by November 2021. Sure, it took a big dip in 2022, but it's bounced back strong, hitting new highs in 2024, partly thanks to U.S. spot Bitcoin ETFs. This wild ride, despite its ups and downs, proves Bitcoin's growing importance as an alternative asset outside the old financial system.

Digital Assets: Not Quite Currency, Not Quite Commodity

Personally, I'm still not fully convinced about digital assets as everyday currency. They're too volatile, have no central issuer, and aren't widely accepted for daily shopping. So, they don't really fit the traditional definition of money.

But they're definitely not a commodity either, like gold or oil. Instead, Bitcoin and many other digital assets are in a unique, evolving category. They're often seen as property for tax purposes, a speculative investment, or a new digital asset class. Their value comes from their tech, their scarcity (for Bitcoin), and the belief in their future, not from a central bank or physical use. This unique, somewhat ambiguous status makes them super appealing to those looking for alternatives.

The Flip Side: Money Laundering Concerns

Of course, this "financial autonomy" has a downside: the potential for money laundering. Bitcoin's pseudonymous nature (transactions are public but linked to addresses, not names) has made it attractive for illicit activities.

However, the crypto world is getting smarter. Blockchain analytics firms are getting really good at tracing transactions and linking addresses to real people. Plus, regulators worldwide are cracking down, forcing crypto exchanges to collect user IDs. So, while the potential for money laundering is there, it's getting much harder as the crypto world matures and gets more regulated. It's a constant game of cat and mouse.

The Future of Financial Access

The way Bitcoin, high-profile politicians like Donald Trump, and the challenges of traditional banking are all colliding highlights a big tension. On one side, you have banks trying to stay compliant and protect their reputation. On the other, you have individuals and groups who just want to access financial services, only to find doors closed.

This whole situation raises huge questions about who gets to be part of the financial world, how much power financial gatekeepers should have, and whether decentralized tech can truly offer a viable alternative. As the global financial scene keeps changing, the stories of Trump, the Tate brothers, and Farage are sharp reminders that for some, Bitcoin and the wider crypto world might not just be an investment, they could be a necessary path to financial freedom in a world that's getting more complex and scrutinized by the day.

The debate over who gets to play in the financial system, and on what terms, is far from over.