The recent developments in the crypto industry have pushed Metropolitan Bank to shut down its crypto services.
Metropolitan Commercial Bank is one of the few U.S based financial institutions that opened its doors to crypto users during the crypto boom. The bank is known to provide crypto-related services like debit cards, payments and account holding services.
After reviewing the recent developments in the crypto space, the board has announced the decision to exit the crypto-related asset services for its users.
It pointed out the reason around the changes in the regulatory environment for banks involved in crypto asset related businesses. The news came after FTX collapse that shocked the entire crypto market in November 2022.
The FTX fall engulfed many crypto projects operating either as a subsidiary of FTX or heavily funded by it. Solana blockchain is one such example of a crypto project badly affected by the FTX collapse.
$SOL token price fell below $10 after the bankruptcy news reached mainstream media. The bank said that the decision to shut down crypto services will have a minimal impact on its financial health.
Meanwhile, Silvergate Capital sold $5.7 billion worth of assets at a loss of $718 million to maintain liquidity after $8.1 billion in crypto assets were withdrawn by its clients after the FTX crash.
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Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.