New York-based Metropolitan Commercial Bank has revealed plans to stop offering crypto-related services due to “recent developments” within the digital asset market.
The bank, which is the parent company of Metropolitan Bank Holding (MCB) and one of few US banks to support the crypto industry, stated that the decision was made following a review by management and the board of directors, and reflects “material changes in the regulatory environment” regarding banks’ involvement in crypto-related businesses, as well as a “strategic assessment of the business case” for the bank’s further involvement at this time.
It is thought that the bank’s decision may have been influenced by the recent collapse of crypto exchange FTX, and concerns that financial firms serving the industry may face stricter regulatory oversight in the future.
Metropolitan Commercial Bank estimates that the move will have a minimal financial impact, as its four crypto clients only generated around 1.5% of its total revenue and 6% of its deposits, equivalent to approximately $1m in revenue and $342m in deposits.
