The Metropolitan Bank Holding Corp, the holding company for Metropolitan Commercial Bank (MCB), says it’s completely exiting its crypto-asset-related vertical.
The cryptocurrency industry had a turbulent year last year as well. No sector escaped unscathed, from a protracted market downturn to exploits in decentralized finance (DeFi) to the FTX scandal.
For some, the activities in the area made it impossible to conduct business. The Metropolitan Bank Holding Corp, the parent company of the Metropolitan Commercial Bank (MCB), a New York-based institution, declared it is quitting the crypto-assets market entirely.
The corporation said in its statement that its choice “reflects recent advances in the crypto-asset industry” as well as modifications to the regulatory environment regarding banks’ participation in industries connected to crypto-assets.
The procedure has allegedly been going on since 2017, and MCB anticipates little financial consequence. Four institutional clients actively involved in cryptoassets currently make up about 1.5% of total revenues and 6% of total deposits for the company.
This development coincides with the ongoing FTX lawsuit proceedings, which have kept the crypto business in the news. According to experts, American regulators will be watching the market more closely in the coming year, especially in light of increased regulatory and oversight efforts by the Securities and Exchange Commission, Financial Accounting Standards Board, and Internal Revenue Service.
In response to the chaos in 2022, the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) jointly issued a statement on Jan. 3 regarding crypto assets.
Additionally, it demonstrated their dedication to ethical banking procedures.In addition to the investigation into FTX, Binance is also being looked into by American courts for possible money laundering.
Further investigations into the interactions between hedge funds and the cryptocurrency exchange have been prompted by this. Despite the scrutiny from the business community, some insiders have high expectations for DeFi in the upcoming year.
