Metropolitan Bank Ceases Cryptocurrency-Related International Wires
Metropolitan Bank Holding Corp (NYSE: MCB), one of the fastest growing banks in the United States, is used by a number of major cryptocurrency exchanges. But the NYSE traded bank has ceased all cryptocurrency-related international wires effective immediately, according to a Fortune report.
“The Bitcoin Bank” Says No to Bitcoin
A Metropolitan customer revealed that his investment firm received a notice on Thursday morning that the bank was “ceasing all international crypto-related wire transfers to and from” it effective immediately. The bank claimed that they could not verify the compliance of international wire transfers for cryptocurrency accounts.
Metropolitan Bank is referred as “The Bitcoin Bank” since it has been used by cryptocurrency companies and investment firms for wire transfers and deposits.
Digital currency wallet Coinbase is among one of the companies that uses it for wire transfers, deposits, and its Shift bitcoin debit card. As the bank hasn’t released any guidance on when it will restore the service, it’s unclear what might happen to the money that existing international clients have in the bank.
More Problems Incoming
Metropolitan Bank’s friendly attitudes towards cryptocurrency has played a role in its rapid growth. But the bank will probably lose traction with its move to shut down crypto-related services.
The decision also puts the bank and the investment firms in a precarious position. Investors’ money will not be returned as U.S. funds are currently holding the capital when conducting business with the bank on behalf of their international clients. It also raise concerns that non-U.S.-based funds who exclusively manage international investors’ money via Metropolitan Bank will be forced to freeze or completely shutter operations.
But the Fortune report noted that MCB’s crypto customers will likely have alternative banks to fall back on.
What do you think of the sudden move? What are the reasons behind it? Leave your comments below.
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