• Metropolitan Commercial Bank is pulling out of the cryptocurrency sector due to recent developments in the market.
• The move comes amid an intense bear market that has rocked the crypto industry over the past year.
• The bank has predicted that there will be a minimal financial impact on its exit from the cryptocurrency space.
Metropolitan Commercial Bank, a New York-based banking firm, has recently announced its decision to exit the cryptocurrency sector due to “recent developments”. This move comes in the midst of an ongoing bear market that has been shaking the crypto industry for the past year.
The parent company of Metropolitan Commercial Bank, Metropolitan Bank Holding (MCB), made the decision after a thorough review by the bank’s Board of Directors and the management. The bank pointed to the recent developments in the crypto sector, the changing regulatory framework surrounding banks engaging in crypto services, and an analysis of the strategic business case for MCB’s involvement in the sector. This decision could be in response to the increased regulatory scrutiny that has been placed on the crypto industry following the collapse of several crypto firms, such as FTX, in 2022. Regulators are now looking to prevent a similar incident from occurring by tightening the rules surrounding firms operating in the sector.
Despite its exit from the crypto sector, the bank has predicted that there will be a minimal financial impact on its withdrawal. The bank currently has four clients in the crypto space and these clients account for a small portion of the bank’s overall revenue.
Metropolitan Commercial Bank’s exit from the crypto industry is yet another indication of the difficult climate crypto firms are facing. With increasing regulatory scrutiny and a long bear market, many crypto firms are struggling to stay afloat. With banks like Metropolitan Commercial Bank pulling out of the sector, it remains to be seen how the industry will be able to recover from this difficult period.