Metropolitan Bank Halts All Cryptocurrency-Related Wire Transfers

In a move that will have far-reaching implications, Metropolitan Bank Holding Corp has halted all cryptocurrency related wire transfers, effective immediately, per a report from Fortune. The information came from statements by Metropolitan customers who were informed that the bank would be “ceasing all international crypto-related wire transfers.”

The decision is highly significant for the cryptocurrency industry. Metropolitan Bank has earned a reputation for being Bitcoin-friendly, according to Fortune, which will likely impact its stock price.

For example, Metropolitan is reportedly one of the main service providers for US-based cryptocurrency exchange Coinbase.

Sign of future regulation

The bank’s official position has not yet been made clear, but it appears that the risk of inability of verification for international cryptocurrency transactions has led to the move. The need to meet Know Your Customer (KYC) regulations has increased the potential for increased regulation in the currently loose cryptocurrency climate.

Friday, US Treasury Secretary Steven Mnuchin indicated that an international effort to control and manage transfers in cryptocurrency could be forthcoming.