Metropolitan Bank Holding Corp. recently responded to allegations of “halting” its international cryptocurrency wire transfers.
In a release shared on the Securities and Exchange Commission website, the financial institution clarified that the claims of it canceling the wire-transfers are false, as the bank has not had a change of policy but had merely sent a reminder to its customers about a pre-existing policy.
“As a matter of policy, the Bank does not accept cryptocurrency-related wire transfers from non-U.S. entities. This is a long-standing policy of the Bank and remains in effect today. Last week, the Bank sent out a reminder to customers of its policy against accepting cryptocurrency-related wire transfers from non-U.S. entities. This reminder to customers is not a new policy for the Bank and was not due to, nor did the Bank experience, any incident of international fraud.”
Where did the report start from?
The report in question originated from this article by Fortune, which was then cited through multiple websites and online publications around the world. The article spoke of an exclusive piece of finding that reflected upon the bank’s decision to stop performing any cryptocurrency related international wire transfers.
Among other things, the report spoke of a source that had confirmed about the notification that his investment firm had received regarding cryptocurrency related international wire transfers.
However, it now seems that it was the same notification which the bank had sent as a reminder, only to be confused with the bank’s implementation of a new policy.
The report had also stated that the bank’s notification was regarding “certain cryptocurrency-related wire transfers from non-U.S. entities that were sent to the Bank in error.” The report further mentioned how this translated to the banking claiming that “it was not aware of the cryptocurrency-related international wires until last week.”
Whereas, the bank’s official statement explained that the policy of not accepting cryptocurrency related wire transfers from non-U. S. entities is a part of its risk management program and has been longstanding. It was explained that this is to comply with the rules and regulations for best banking practices.
This was a cause of concern about more regulations
This clears up the air of uncertainty that had surrounded the bank’s alleged and sudden stance on cryptocurrency transfers ever since the news from Fortune broke. The significant reaction of concern was not just due to Metropolitan Bank’s status as a prominent financial institution, but also because of how multiple cryptocurrency exchanges use its services and its subsidiaries as their primary banking solutions provider.
In the era of digital assets and cryptocurrencies, the bank has earned a reputation for being cryptocurrency friendly by facilitating these exchanges. Therefore, the clarification brings a sigh of relief to those who had incorrectly deduced that it was the start of a slew of regulations following the steps of South Korea and China, two countries that have recently been in the news for their suddenly stern treatment towards the cryptocurrency industry.