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/