According to a statement from Metropolitan Commercial Bank, it intends to fully withdraw from the cryptocurrency industry. According to the bank’s most recent report to the US Securities and Exchange Commission (SEC), the move is a reaction to changes in the Bitcoin market.
Following recent changes in the sector and regulatory pressure, Metropolitan Bank Holding (MBH), the parent company of the New York-based bank, stated in January that it was discontinuing crypto-related operations.
The bank decided to leave the cryptocurrency market after carefully analyzing its business case and current economic events. Gary Gensler, the current chair of the SEC, has been outspoken about his worries about cryptocurrencies, which may have affected the bank’s decision to leave the crypto market.
Digital asset-related deposits at the bank fell to 4% of total deposits by the end of March, totaling $217.6 million. As a result, the bank has begun severing ties with four clients who are involved in digital assets, and it expects to finish the process in 2023. Importantly, the ability of clients to transfer or receive money from crypto-asset companies won’t be impacted by this decision.
The decision of Metropolitan Commercial Bank represents a significant change in how the banking industry perceives digital assets. Although the bank’s withdrawal is an obstacle for the cryptocurrency industry, Metropolitan itself is only anticipated to suffer minor financial consequences.
Crypto-related customers, assets, and deposits have never represented a sizable portion of the company’s business or exposed it to sizable financial risks. The bank will continue to put all of its efforts into expanding its core business and providing exceptional value to all of its stakeholders through high-touch, relationship-driven banking, which is backed by good risk management and financial restraint.