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Metropolitan Commercial Bank Pulls Out of Cryptocurrency Market: What It Means

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According to reports, according to a filing submitted to the Securities and Exchange Commission (SEC) on April 18th, Metropolitan Commercial Bank is nearing a complete exit from th

Metropolitan Commercial Bank Pulls Out of Cryptocurrency Market: What It Means

According to reports, according to a filing submitted to the Securities and Exchange Commission (SEC) on April 18th, Metropolitan Commercial Bank is nearing a complete exit from the cryptocurrency market, leaving only $278.5 million in cryptocurrency related deposits. The document states that the previously announced withdrawal from the cryptocurrency related vertical field has almost been completed, and its core deposit total (excluding cryptocurrency customers) was $4.9 billion as of March 31.

Metropolitan Commercial Bank is nearing a complete exit from the cryptocurrency market

With the recent announcement that Metropolitan Commercial Bank is exiting its cryptocurrency-related business, many are left wondering what this means for cryptocurrency users and the industry as a whole. In this article, we will explore the reasons behind Metropolitan Commercial Bank’s decision, as well as the implications it may have for the future of cryptocurrency.

Background

According to a filing submitted to the Securities and Exchange Commission (SEC) on April 18th, Metropolitan Commercial Bank is nearing completion of its withdrawal from the cryptocurrency market. The document states that the bank’s core deposit total (excluding cryptocurrency customers) was $4.9 billion as of March 31st, with only $278.5 million remaining in cryptocurrency-related deposits.
This marks a significant departure from the bank’s previous stance on cryptocurrency. In 2018, Metropolitan Commercial Bank launched a cryptocurrency-focused banking platform in collaboration with institutional cryptocurrency trading platform, Coinbase. The platform allowed Coinbase users to deposit and withdraw funds directly from their accounts, without having to go through a traditional bank.

Reasons for Withdrawal

Metropolitan Commercial Bank has not provided any specific reasons for its decision to withdraw from the cryptocurrency market. However, there are a number of factors that may have contributed to the bank’s decision.
One reason may be the increasing regulatory scrutiny on cryptocurrency-related businesses. The SEC has been cracking down on non-compliant cryptocurrency exchanges and ICOs, and recently launched a probe into companies that have raised funds through ICOs. As a traditional bank, Metropolitan Commercial Bank may have felt uncomfortable dealing with a relatively unregulated industry.
Another reason may be the volatile nature of the cryptocurrency market itself. Cryptocurrencies are notoriously volatile, with wild fluctuations in value occurring on a daily basis. This makes it difficult for banks to manage their risk exposure, and may have led Metropolitan Commercial Bank to re-evaluate its involvement in the industry.

Implications

Metropolitan Commercial Bank’s withdrawal from the cryptocurrency market could have far-reaching implications for the industry as a whole. One immediate effect is that Coinbase users will now have to find alternative banking options for their cryptocurrency-related transactions. This could be problematic for some users, who may prefer the convenience of the former arrangement.
More broadly, however, Metropolitan Commercial Bank’s withdrawal signals a growing wariness among traditional financial institutions towards cryptocurrency. Banks have historically been cautious about embracing cryptocurrency, and Metropolitan Commercial Bank’s decision could serve as a warning to other banks thinking of investing in the industry.

Conclusion

Metropolitan Commercial Bank’s decision to exit the cryptocurrency market comes as a surprise to many, and could have significant implications for the future of cryptocurrency. As regulatory scrutiny and market volatility continue to pose challenges for the industry, it remains to be seen how other banks will respond to this news.

FAQs

**1. What is Metropolitan Commercial Bank?**
Metropolitan Commercial Bank is a traditional US bank that offers a range of commercial and business banking services.
**2. Why did Metropolitan Commercial Bank decide to leave the cryptocurrency market?**
The bank has not provided any specific reasons for its decision, but it may be related to regulatory scrutiny and market volatility in the cryptocurrency industry.
**3. What are the implications of Metropolitan Commercial Bank’s withdrawal for Coinbase users?**
Coinbase users will now have to find alternative banking options for their cryptocurrency related transactions.

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