Vast Bank Leaves Crypto: How Will This Affect Bitcoin and Other Crypto?
Vast Bank, an Oklahoma-based financial giant has announced that it will be leaving the crypto market.
Vast Bank is the first US banking institution that allows its customers to buy, sell, and hold cryptocurrency alongside a traditional checking account. According to a note on their website, Vast Banks will disable and remove the Vast Crypto Mobile Banking application from Google and Apple. As a result, the user’s Vast Crypto Mobile Banking accounts including any Digital assets held in custody will be liquidated and closed.
In addition, the bank also advised anyone who had their account closed before removing the funds would receive a cashier’s check via mail.
Vast Bank’s closure followed a consent order from the Office of the Comptroller of the Currency (OCC) signed by Vast in October 2023. The OCC claimed that the bank does unsafe and unsound practices including those relating to capital ratios, capital and strategic planning, project management, books and records, liquidity risk management; interest risk management, information technology controls, risk management for new products, and custody account controls.
Vast Bank’s Chief Executive Tom Biolchini stated that the OCC order was directed towards their cryptocurrency play and it was a strategic decision to leave the crypto market and emphasize the importance of separating cryptocurrency from community banking.
The order required Vast Bank to submit an acceptable revised written capital and strategic plan covering at least the next three years and to implement a compliance committee.
The announcement comes as a huge blow for cryptocurrencies like Bitcoin (BTC). This is due to the bank’s collaborations with major crypto entities in offering its services were crucial as they provided the needed technology and exchange infrastructure.
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