Metropolitan Commercial Bank is shutting down its crypto business.

Metropolitan Commercial Bank He left the crypto business.

The $6.4 billion-asset bank, a division of New York City-based Metropolitan Bank Holdings Corp., made the announcement Monday. The company explained that the decision was made due to recent changes in the crypto-asset industry and changes in the regulatory environment for banks.

“Crypto-related customers, assets and deposits have never represented a part of the company’s business and have never exposed the company to material financial risks,” MCBB President and CEO Mark DeFazio said in a press release. In addition, the decision In 2017, MCB said it was moving away from crypto.

According to the release, MCB has four active institutional crypto-asset clients and the bank offers debit card, payment and account services. They account for 1.5% of gross income and 6% from bank deposits. MCB expects to close these connections completely by 2023.

The way forward for banks involved in cryptocurrency is uncertain after the collapse of a cryptocurrency exchange company and fraud allegations against former CEO Sam Bankman-Fried. including many institutions Silvergate Capital Hold FTX deposits or conduct business with the exchange in La Jolla, California It begs the question. As to whether the bank has done enough due diligence. The violence could increase the level of regulation for banks that want to work with crypto companies, or tempt them to cut ties with these companies altogether. On the other hand, banks that stay with crypto companies It can be more attractive For investors and these businesses because of their infrastructure and reputation for safety.