The Exit of Metropolitan Commercial Bank from the Cryptocurrency Market: Why and what it means

04/20/2023 15:48 • Blockchain Briefs • 99 views

According to reports, according to a filing submitted to the Securities and Exchange Commission (SEC) on April 18th, Metropolitan Commercial Bank is nearing a complete exit from the cryptocurrency market, leaving only $278.5 million in cryptocurrency related deposits. The document states that the previously announced withdrawal from the cryptocurrency related vertical field has almost been completed, and its core deposit total (excluding cryptocurrency customers) was $4.9 billion as of March 31.

Metropolitan Commercial Bank is nearing a complete exit from the cryptocurrency market

Metropolitan Commercial Bank, one of the leading banks in the US, has nearly completed its exit from the cryptocurrency market. The decision has left only $278.5 million in cryptocurrency related deposits. This article seeks to explore the reasons behind the exit and the implications of the move for the cryptocurrency market.

The Background

Metropolitan Commercial Bank, also known as MetComBk, has been one of the leading banks providing services to cryptocurrency-related businesses. The bank, which is based in New York, launched its cryptocurrency services in 2014, providing a range of products, from cryptocurrency exchange accounts to wire transfers, and debit cards. The bank’s services were sought after by cryptocurrency businesses and investors, who had faced challenges in accessing banking services, including opening accounts and processing transactions with other banks.
However, in 2018, regulatory scrutiny increased, with the Office of the Comptroller of the Currency (OCC) overseeing the bank’s activities in the cryptocurrency space. This was followed by a lawsuit against the bank by a cryptocurrency exchange alleging that MetComBk closed their accounts without due process.

The Exit

With increased regulatory scrutiny and lawsuits, Metropolitan Commercial Bank decided to exit the cryptocurrency market. According to a filing submitted to the Securities and Exchange Commission (SEC) on April 18th, the bank has nearly completed its withdrawal from the cryptocurrency-related vertical field, leaving only $278.5 million in cryptocurrency related deposits. The document states that the bank’s core deposit total (excluding cryptocurrency customers) was $4.9 billion as of March 31.

Why the Exit and What it Means

The exit of Metropolitan Commercial Bank from the cryptocurrency market has several implications. First, it could increase the difficulty for cryptocurrency-related businesses in accessing banking services. As highlighted earlier, MetComBk’s services had been sought after by cryptocurrency businesses and investors who had few options for banking services. With the exit of MetComBk, it is likely that other banks could also follow suit, leading to a decline in options for cryptocurrency businesses.
Additionally, the exit could lead to more regulatory scrutiny on other banks providing services to cryptocurrency businesses. With MetComBk facing increased regulatory scrutiny, other banks may also face heightened scrutiny on their activities in the cryptocurrency space.
Finally, the exit could also impact the cryptocurrency market. While $278.5 million is not a large sum in the cryptocurrency market, the exit of a bank with considerable experience and expertise in the space could send a negative signal to investors and businesses, leading to a loss of confidence in the market.

Conclusion

The exit of Metropolitan Commercial Bank from the cryptocurrency market is a significant development that could impact the cryptocurrency space. The decision highlights the challenges that cryptocurrency-related businesses face in accessing banking services, and the regulatory scrutiny that banks operating in the cryptocurrency space face. It remains to be seen how the move will impact the market in the long term, but it is clear that the market needs stable and reliable banking services for continued growth.

FAQs

1. Why did Metropolitan Commercial Bank exit the cryptocurrency market?
Ans. The bank exited the cryptocurrency market due to increased regulatory scrutiny and lawsuits.
2. What is the significance of the exit of Metropolitan Commercial Bank from the cryptocurrency market?
Ans. The exit could lead to more difficulties for cryptocurrency businesses in accessing banking services, increase regulatory scrutiny on other banks, and impact investor confidence in the market.
3. How much cryptocurrency-related deposits did Metropolitan Commercial Bank leave after its exit?
Ans. The bank left only $278.5 million in cryptocurrency-related deposits after its exit.

This article and pictures are from the Internet and do not represent aiwaka's position. If you infringe, please contact us to delete:https://www.aiwaka.com/2023/04/20/the-exit-of-metropolitan-commercial-bank-from-the-cryptocurrency-market-why-and-what-it-means/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.