Metropolitan Commercial Bank, which is a full-service commercial bank headquartered in New York has recently made a sudden decision that might have far-reaching implications. It’s not a rumor, Metropolitan Bank Holding Corp has officially ceased all cryptocurrency-related international wires. Before effective cessation, the bank had been a hope for many cryptocurrency companies and investment firms for deposits and wire transfers.
This comes after one of the Metropolitan Commercial Bank’s client had suffered a fraud incident. It’s clear that, the bank was unable to verify the compliance of international wire transfers for cryptocurrency accounts. This has been proved to be true following fortune’s interview with a metropolitan customer who confirmed that on Thursday morning he received a notification from the bank that read, “the bank is ceasing all international crypto-related wire transfers to and from it effective immediately”.
Whether Metropolitan will restore the service in the future or not, it’s something debatable. It’s similarly unsure about what will happen as existing international clients claim to have deposits in the bank.
Not so long ago, we watched the rapid growth of Metropolitan. Some even nicknamed it “The Bitcoin Bank”. It matched exactly with the aggressively growing cryptocurrency market. However, its abrupt decision to cease crypto-related international wires is a venom for its future growth.
The U.S. funds that conduct business with Metropolitan are now holding clients’ money as they cannot offer refunds. This is insecure to both the bank and investment firms. On the other side, the non U.S. funds working with Metropolitan might be obliged to hold or entirely close their operations. This puts investors’ money on the cross roads.
The good news is; Silvergate Bank and Cross River Bank are proposed to be the best alternatives to cater Metropolitan’s cryptocurrency customers. To cut the long story short; there is a need for “Bank Diversification Strategy” to cut such risks in the future.
As this story keeps trending, we promise to keep you updated with the latest details.