New York base Metropolitan Bank Holding Corp has ceased all cryptocurrency-related international wire transfers, effective immediately.
A customer of Metropolitan Bank reported to Fortune that he was notified of bank’s ceasing action for all international crypto-related wire transfers on an immediate basis. He addressed bank is inept of verifying the compliance of international wire transfers for cryptocurrency accounts. This halt decision comes after the implication occurs with one of the bank’s client.
It could affect its stock price because the bank was reputed of being bitcoin-friendly and noticed as the prominent service provider for Coinbase exchange. Upon questioning, Coinbase reported Fortune that “it will not address anything on its banking relationship.”
The clear statement and decision by Metropolitan are significant because of the Bank as “The Bitcoin Bank”. Thus, the cease may control the rapid growth of cryptocurrency in a decentralized market.
US-based funds, operating the business with Metropolitan bank on behalf of international investors. However, it may incur critical situation of returning the investor’s money. While the non-US based funds administer investor’s funds via bank will either need to solidify their investment. Else need to close down the operations.
Lastly, crypto wire-transfer halt by the bank may abruptly affect its stock price while its crew is experiencing Post – IPO lock-up period still.
Recently, Treasury of US secretary. Steven Mnuchin has expressed the number of statements for preventing cryptocurrency exploitation. Moreover, cryptocurrency regulations have also been covering by various countries to thwart crypto and ICO-related scams.
However, the bank is yet to provide a clear view about the halt; whether or not it will restore the service and what will happen to client’s investment that is already existed in the bank.