U. S. bank refuses to work with cryptocurrencies
2023.01.10 13:03
U. S. bank refuses to work with cryptocurrencies
By Ray Johnson
Budrigannews.com – The crypto industry experienced yet another turbulent year in 2017. No sector was spared, from the FTX scandal to exploits in decentralized finance (DeFi) and a prolonged market downturn.
The happenings in the area proved to be unsustainable for business for some. The New York-based holding company for Metropolitan Commercial Bank (MCB), Metropolitan Bank Holding Corp., announced that it will completely exit its crypto-assets vertical.
The company stated in its statement that its decision “reflects recent developments in the crypto-asset industry” as well as shifts in the regulatory environment regarding bank involvement in crypto-asset-related businesses.
MCB claims that the procedure has been in progress since 2017 and that it anticipates little financial impact. It currently has four active institutional crypto-asset clients, each of which contributes approximately 1.6 percent to total deposits and 1.5 percent to total revenues.
This development occurs concurrently with the ongoing FTX case proceedings that have maintained the spotlight on the cryptocurrency industry.
In light of the Securities and Exchange Commission’s (SEC), the Financial Accounting Standards Board’s (FASB’s), and the Internal Revenue Service’s (IRS’s) plans to tighten crypto regulations and oversight, experts anticipate increased regulatory scrutiny of the sector in the coming year.
In light of the crypto-chaos in 2022, the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued a joint statement on January 3 regarding crypto assets. Additionally, it emphasized their dedication to sound banking practices.
In addition to the investigation into FTX, Binance is also the subject of an investigation into alleged U.S. money laundering violations. This has prompted additional investigations into the connections that hedge funds have with the cryptocurrency exchange.
Some insiders in the industry have high hopes for decentralized finance this year, despite the scrutiny.
More South Korea is investigating Bithumb
