Metropolitan Bank Won't Work With Crypto-investors

Metropolitan Bank Won't Work With Crypto-investors

The company "Metropolitan Bank Holding Corp", which is popular among cryptocurrency companies, stopped performing international transfers related to cryptocurrencies.

Metropolitan is one of the main providers of banking services for the American holding company Coinbase.

According to one of the bank's clients, the Metropolitan Bank decided this because it could not confirm the compliance of these operations with the bank's rules.

The company can not ensure the verification of all data and compliance with the requirements of international standards on combating the laundering of proceeds from crime. Also, this step was the response of the banking organization to an incident involving the fraudulent actions of one of its clients when performing an international transfer.

A sudden stop of international transactions may have consequences

The decision of the bank may lead to a decrease in the quotations of its shares, which grew rapidly because of the November IPO thanks to the cooperation of the bank with the cryptocurrency sector. The bank was often called Bitcoin Bank for its partnerships with crypto-currency companies.

It is not yet known whether Metropolitan Bank is going to resume handling cryptocurrency transactions in the future.

It is also unclear what will happen to the accounts of crypto-investors. This step may slow the growth of the bank on the crypto market, as earlier its demand was partly due to "friendly" relations to digital currencies.

Also, US investment funds cooperating with Metropolitan Bank cannot yet return money to their clients, and some of them will have to freeze or completely stop working, as they conducted international transactions exclusively through this bank.

Information Source: Fortune