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Metropolitan Commercial Bank Away from the crypto business.
The $6.4 billion bank in New York City, a division of the Metropolitan Bank Holding Corporation, made the announcement Monday. The company said the decision was based on recent developments in the cryptocurrency industry and changes in the regulatory environment for banks.
“Cryptocurrency-related customers, assets and deposits are not a material part of the company’s business and do not expose the company to significant financial risk,” said Marc DeFazio, president and CEO of MCB, in a press release. No. He also said the decision dates back to 2017, when MCB moved away from cryptocurrencies.
According to the release, MCB has four active crypto-related institutional clients whose banks offer debit card, payment, and account services. They account for about 1.5% of the bank’s total revenue and 6% of its total deposits. MCB plans to fully terminate these relationships in 2023.
After cryptocurrency exchange FTX collapsed and former CEO Sam Bankman-Fried was indicted on fraud charges, the future of banks involved in cryptocurrencies is uncertain.some institutions including silvergate capital Had FTX deposits or traded with an exchange in La Jolla, California. question As to whether the bank has conducted sufficient due diligence. The turmoil may also raise regulatory hurdles for banks wanting to work with cryptocurrency companies, or end their ties with these companies altogether.On the other hand, banks that continue to engage with cryptocurrency companies may become more attractive We provide investors and these companies with a reputation for compliance infrastructure and safety.
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