Popular among cryptocurrency companies Metropolitan Bank has stopped the processing of international transfers related to cryptocurrency. The Bank recently informed customers.
Client Metropolitan announced that his investment company on Thursday received a warning from the Bank about the “suspension of processing incoming and outgoing Bank transfers related to cryptocurrency”. Its decision, the Bank explained the inability to verify international transfers by cryptocurrency.
The official position of the Bank is not yet known. Presumably, Metropolitan had the courage to take this step after the detection of cases of fraud involving one of his clients. The need to comply with rules “Know your customer” (KYC) has increased the potential for increased regulation in the current free cryptocurrency climate.
Metropolitan has not said yet whether they plan to resume service cryptocurrency companies in the future. Not clear is the fate of the customer funds stored in the Bank.
The surprising decision of the Metropolitan is of particular importance for several reasons.
First, after the November IPO of Metropolitan showed good growth due to its focus on the emerging market of digital currencies. Some customers call him “the bitcoin Bank”. It is known that the American stock exchange, Coinbase is one of the companies that use the Bank’s services to transfer money and receive deposits. Cancellation of cryptocurrency transactions can reduce the number of companies and have a negative impact on the future prospects of the Bank and the value of its shares.
Second, American funds, working with international clients across Metropolitan, now hold their funds without the possibility of return of capital. This results in Bank and investment firms to instability.
Thirdly, non-us funds, working exclusively with international clients across Metropolitan, could potentially be forced to suspend or fully terminate their activities.