Wed. Jul 17th, 2024

• The US Federal Deposit Insurance Corporation (FDIC) has reportedly ruled that potential buyers of the crypto-friendly Signature bank must give up all crypto businesses at the bank when submitting their bids.
• This move by the US regulators has caused controversy among the crypto community who believe this is another major crackdown on the industry.
• Signature Bank was one of few US banks providing financial services to crypto companies and had a quarter of its deposits accounted to crypto firms.

The U.S. Regulator’s Crackdown on Crypto

Amidst the instability in the US banking sector, the United States Federal Deposit Insurance Corporation (FDIC) has reportedly now made a decision against the crypto industry. According to a report published on Wednesday evening, potential buyers of the crypto-friendly Signature bank can now submit their bids but with a major condition – they must give up all crypto businesses at the bank.

Controversy Among Crypto Community

This move by the US regulators has raised controversy among the crypto community who are convinced that this is yet another major crackdown on an industry that is already facing significant hurdles from traditional banking systems and regulations. Don’t wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today!

What Is Signature Bank?

Signature Bank was one of few US banks providing financial services across to crypto sector, with nearly a quarter of its deposits accounted to crypto firms, as well as its real-time payment processor Signet which firms such as USDC issuer Circle used in processing transactions after business hours. BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? 570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!

Regulators Closure Of Signature Bank

The bank was recently shut down by US regulators and probed for potentially lax monitoring that may have resulted in money laundering activities being conducted through its platform. In February, regulators filed a class action lawsuit against Signature Bank alleging that it knew about and facilitated FTX propitiated frauds as well as other illegal activities taking place within its system.

Conclusion

These moves by United States regulators have made it more clear how they are keen on disrupting what could be considered an emerging asset class within traditional finance markets while also targeting those who have been involved in facilitating these operations from within conventional banking systems such as Silvergate and Silicon Valley Bank .

By admin