The last year was a tumultuous one for the cryptocurrency industry, with a perpetual market downturn and numerous exploits in decentralized finance (DeFi) and the FTX scandal no sector was left untouched. One of the biggest impacts of the year was New York-based Metropolitan Bank Holding Corp’s decision to completely exit its crypto-assets vertical.
Metropolitan Bank Holding Corp is the parent company of Metropolitan Commercial Bank, a major player in the cryptocurrency world. The bank’s decision to cease its involvement in cryptocurrency was made after the New York State Department of Financial Services (NYDFS) began exploring ways to regulate Bitcoin. Executives at Wall Street’s biggest banks were worried that regulating the cryptocurrency could lead to significant losses and put their businesses at risk.
The NYDFS also charged Bitcoin entrepreneur Charlie Shrem with engaging in a scheme to sell and transfer Bitcoins to users of black-market websites. Shrem later reached a plea deal to resolve the charges and was sentenced to two years in prison.
These events, combined with the perpetually low market prices, have caused many banks to abandon their crypto-assets verticals. The Metropolitan Bank Holding Corp’s decision to exit the crypto sector is a major setback for the industry and will likely lead to other banks following suit.
The decision by the Metropolitan Bank Holding Corp to exit the crypto sector has had a significant impact on the industry. The news has caused a great deal of uncertainty among investors, with many fearing the worst. The decision has also led to a decline in the number of institutional investors in the space, as they are unwilling to invest in an asset class that is so uncertain.
The news has also had a major impact on the way cryptocurrency is viewed by the public. The mainstream media has been quick to report on the news, with many outlets painting a negative image of digital currencies. This negative sentiment has caused many to lose faith in the industry, which could have a major impact on the future of the sector.
The news of the Metropolitan Bank Holding Corp decision to exit the crypto sector has been a major setback for the industry. However, it is important to remember that the success of the industry does not rest solely on the decisions of one bank. There are still many opportunities for investors and entrepreneurs in the sector, and the long-term viability of the industry is still very much intact.