3 months ago 1 min read

Metropolitan Bank Plans to Leave Cryptocurrency

metropolitan-MCB

Metropolitan Bank Plans to Leave Cryptocurrency

Due to "recent changes" in the digital asset sector, Metropolitan Commercial Bank will stop offering services linked to cryptocurrencies.

The parent company of the New York-based lender, Metropolitan Bank Holding (MCB), announced the decision to leave the crypto-asset-related vertical on Monday. MCB was one of the few U.S. banks to publicly serve the cryptocurrency business in recent years. The bank said.

"This decision follows a careful review by the Board of Directors and management and reflects recent developments in the crypto-asset industry, material changes in the regulatory environment regarding banks’ involvement in crypto-asset related businesses, and a strategic assessment of the business case for MCB’s further involvement at this time,"

The bank is probably alluding to the ongoing repercussions of the collapse of the cryptocurrency exchange FTX late last year and worries that any financial institutions serving the sector would be subject to stricter regulatory supervision going forward.

The bank's four crypto clients accounted for roughly 1.5% of its overall revenue and 6% of its deposits; the bank stated that it anticipates "little financial impact from the leave." Based on the company's Q3 2022 statistics announced in October, these values correspond to about $1 million in revenue and $342 million in deposits.

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