According to a press release from the New York Metropolitan Commercial Bank, also known as “MCB”, the banking industry no longer wants to deal with cryptocurrencies.
The bank said it will stop offering cryptocurrency-related services due to “recent developments” in the market. Today’s announcement of our departure from cryptocurrency-related deposits represents the end of the process that began in 2017, when we decided to move to crypto and not develop the business.
The Metropolitan Bank Said That Crypto Has Not Exposed It To Financial Risks
However, as the bank quickly points out, customers, assets, and deposits related to cryptocurrencies do not make up a large number of financial institutions’ operations, and they have never invested in real estate. the project in a situation where it is facing serious financial problems.
MCB said it will not deviate from its main objective of expanding its business and creating added value for all stakeholders by providing banking services based on relationships supported by financial discipline and asset management. effective music.
According to the newspaper, the company expects that this release will have an incalculable impact on the company’s finances. MCB currently has four corporate clients who are actively involved in crypto-assets. In total, these customers represent 1.5% of total revenue and 6% of all deposits. Metropolitan Bank’s limited involvement with these customers is limited to providing debit card, payment and account related services.
The company has no outstanding loans to any of these customers, does not keep any cryptocurrency assets on its balance sheet, and does not promote or sell these assets to its customers. The bank has begun the process of terminating its business contracts with these customers in a systematic manner, and the bank expects that this process will be completed within the year 2023.
This decision will not affect the ability of current customers to transfer money or receive money from the crypto-asset company they choose to do business with, and it will not affect the services of the bank to those market without cryptocurrency. services as their primary business model, the press release said. This news comes in the context of the ongoing trend arising from the FTX issue, which has brought the public’s attention to the cryptocurrency sector.