Metropolitan Bank Holding Corp., the holding company of the New York-based Metropolitan Commercial Bank (MCB). cryptocurrency announced that it would close its department. The bank has become one of the latest victims of the crypto winter.
According to the press release issued by the bank, Metropolitan Commercial Bank’s It currently has four active institutions accounting for approximately 1.5% of total revenues and 6% of total deposits. Therefore, the financial impact of exiting this vertical will be minimal. Services offered to these customers include debit cards, payment and account services.
The MCB said this decision “reflects the latest developments in the cryptocurrency industry” and is also influenced by changes in the regulatory environment regarding banks’ participation in crypto-asset-related business.
Koinfinans.com As we reported, the bank has already begun the process of closing its ties to crypto-related accounts and expects the processes to be completed in 2023. It currently has no outstanding loans to any of these clients and does not hold crypto assets on its balance sheet or provide services to its clients that facilitate the sale of crypto assets.
MCB said that this development does not affect customers’ ability to conduct existing transactions with crypto-asset companies they choose to do business with, nor does it affect MCB’s service to clients that do not have crypto-asset-related activities as its core business.
This move by MCB comes as companies involved in the crypto industry come under increasing scrutiny from regulators in the United States following the collapse of FTX. The Securities and Exchange Commission, the Financial Accounting Standards Board, and the Internal Revenue Service have all signaled that in 2023 they will focus on crypto regulation and increase their oversight.