The US-based Metropolitan Commercial Bank has announced that it will end crypto-related services due to “recent developments” in the cryptocurrency industry.
One of the few banks providing services for cryptocurrencies in the USA. Metropolitan Commercial Bank announced in a recent press release that it would be ending the cryptocurrency services they started in 2017. The bank cited the reasons for this decision in the crypto markets. latest developments and significant changes in the regulatory environment suggested.
On the other hand, the bank’s crypto money services total revenues. 1.5%and total deposits 6%and has four crypto-active institutional clients. Metropolitan Commercial Bank, on its balance sheet crypto doesn’t hold and its customers does not market crypto assets or does not sell. For this reason, the bank’s withdrawal from the said services minimal financial impact expected to cause.
President and CEO of Metropolitan Commercial Bank Mark DeFazio In his statement on the subject, he stated that they carefully examined the issue and that they took this decision in accordance with their strategy:
Crypto-related customers, assets and deposits have never represented a significant part of the company’s business and have never exposed the company to significant financial risks.
US regulatory agencies; US Federal Reserve (Fed), Federal Deposit Insurance Corporation (FDIC) and Office of the Currency Controller (OCC) Banks were warned about the risks of Bitcoin (BTC) and cryptocurrencies, in a collective statement shared by regulators, including: