According to a report, Signature Bank has instructed its cryptocurrency clients to close their accounts by April 5. The bank has also warned that any crypto deposits not transferred to another bank account will be liquidated and a check mailed to the client's address.
Signature Bank is one of the few banks in the United States that has been accepting deposits from cryptocurrency-related businesses. However, it now appears that the bank is looking to exit this space.
The move comes amid increasing regulatory scrutiny on cryptocurrencies and related businesses. Many banks have been reluctant to work with these types of companies due to concerns about money laundering, fraud, and other illegal activities.
It remains unclear how many clients will be affected by Signature Bank's decision or what impact this may have on the broader cryptocurrency industry. However, some experts believe that this could lead other banks to follow suit and stop serving crypto-related customers altogether.
This is not the first time that Signature Bank has made headlines for its involvement with cryptocurrencies. In January, the bank announced plans for a new platform called "Signet" which would allow real-time payments using blockchain technology.
However, it seems that Signature Bank's enthusiasm for cryptocurrencies may be waning as regulators continue their crackdown on these types of assets. It remains to be seen whether other banks will join them in exiting this space or if they will continue working with cryptocurrency-related businesses despite increased scrutiny from regulators.