[2018-1-15] "Bitcoin Bank" stops international cryptocurrency wire transfers

[DowBit]

Metropolitan Bank Holding Corp, used by many cryptocurrency companies such as Coinbase, has abruptly stopped all cryptocurrency wire transfers. A case of international wire fraud is allegedly behind the sudden move. Stricter know your customer (KYC) policies may drive the pace of regulation in the industry.

Fortune reports that a Metropolitan Bank customer said his investment firm was notified on Thursday morning that the bank would “cease all international crypto-related wire transfers to and from” it effective immediately. According to the customer, the bank could not verify the compliance of international wire transfers for cryptocurrency accounts. One of the bank’s clients is alleged to be involved in international wire fraud.

Among the bank’s many cryptocurrency-related partners, Coinbase uses Metropolitan for wire transfers and deposits.

Metropolitan hasn’t said whether it plans to restore the service or not. It’s also unclear what might happen to the money that existing international clients have in the bank. Fears of frozen assets shook the cryptocurrency community.

More: https://dowbit.com/bitcoin-bank-stops-international-cryptocurrency-wire-transfers/

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[MoonJeina]

I think that they must have been prepared for such outcomes . The uncertainty level related to cryptocurrency tends to remain rigid all the time .
Stopping all the trnasfers for one possible consipracy might not be a good idea . That is going to halt so many transfers and the people who are reliable on those transfers . Many people have believed in the wire transfers at the moment and one possible and alleged fraud shouldn't be the reason to stop all the functioning . Instead of such stupid approach they must investigate the matter on its personal level .  Imagine the chaos cteated by the people if all the bank transfers of a bank got disrupted and stopped because of one possible fraud by some criminal . That ain't intelligent . 

[The BlockRx Project]

Its sad news. do you think it will work in near future?

[squatter]

Among the bank’s many cryptocurrency-related partners, Coinbase uses Metropolitan for wire transfers and deposits.

Metropolitan hasn’t said whether it plans to restore the service or not. It’s also unclear what might happen to the money that existing international clients have in the bank. Fears of frozen assets shook the cryptocurrency community.

Original article here: http://fortune.com/2018/01/14/metropolitan-bank-cryptocurrency-wires/

I haven't seen any announcements from Coinbase or GDAX about halting wires from their international customers. So maybe they have alternatives in place already.

Its sad news. do you think it will work in near future?

The author notes that there are other cryptocurrency-oriented banks that can likely fill the void, like Silvergate Bank and Cross River Bank. This is just one intermediary bank. I'll become more concerned if we see similar moves from competing banks. That would suggest government/regulatory action is on the way.