Due to the crypto winter, the New York-based company, Metropolitan Commercial Bank, announced on 09.01.2023 to close its cryptocurrency unit. Most likely, the decision was attributed to the collapse of the crypto exchange FTX at the end of last year, therefore all financial companies involved will be subject to stricter regulatory oversight in the future.
Metropolitan Commercial Bank has been providing debit cards, payments, and account services to its customers in this sector. However, the impact will be minimal as the currently active institutions only record a little over 1.5% of total revenue and 6% of total deposits. These figures equate to about $1 million in revenue and $342 million in deposits, based on the company’s Q3 2022 results reported in October. The bank assured that the current ability of customers to transact with crypto-asset companies of their choice, or the services provided by the bank to its customers who are not in the crypto-asset industry full-time, will not be affected by this change. It was reported that the bank currently has no outstanding loans to any of these clients, does not hold any crypto assets on its balance sheet and does not facilitate the sale of crypto assets.
One of the first banks to engage in digital assets will shut down all activities by the end of 2023, so the processes have already begun.
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