-The Metropolitan Bank Holding Corp announced its complete exit from its crypto-asset-related vertical.
-The decision reflects recent developments in the crypto-asset industry, as well as changes in the regulatory landscape.
-This comes alongside the ongoing proceedings from the FTX case, which have kept the spotlight on the crypto industry.
The crypto industry has seen a tumultuous year, with a lasting market downturn, exploits in decentralized finance (DeFi), and the recent FTX scandal that have left no area unscathed. It’s no surprise, then, that the Metropolitan Bank Holding Corp, the holding company for New York-based Metropolitan Commercial Bank (MCB), has announced its complete exit from its crypto-asset-related vertical.
In a statement, the corporation said its decision “reflects recent developments in the crypto-asset industry,” along with changes in the regulatory landscape regarding banks’ involvement in crypto-asset-related businesses. The process of exiting the vertical had been ongoing since 2017, and MCB expects little financial impact. It currently has four active institutional crypto-asset-related clients, which account for around 1.5% of total revenues and 6% of total deposits.
This development comes alongside the ongoing proceedings from the FTX case, which have kept the spotlight on the crypto industry. Experts are forecasting increased scrutiny from regulators in the United States towards the space in the upcoming year, especially with the Securities and Exchange Commission, the Financial Accounting Standards Board and the Internal Revenue Service seeking to increase crypto regulations and oversight.
The crypto industry is still a relatively new space, and the various changes that have been happening over the last few years have been difficult to keep up with. As more regulatory clarity is brought to the industry, it’s likely that companies like MCB will take a more proactive approach to their involvement in crypto-related businesses. Until then, the industry will continue to experience its share of turbulence as it navigates the regulatory landscape.