Signature Bank, a New York-based full-service commercial bank, has reportedly told its cryptocurrency clients to close their accounts by April 5. According to reports, any crypto deposits not transferred to another bank by the deadline will be liquidated and a check mailed to the client's address.
The move comes amid increasing regulatory scrutiny of the cryptocurrency industry in the United States. Signature Bank has been one of the few banks willing to work with crypto clients, but it appears that even they are feeling pressure from regulators.
The news has caused concern among some in the crypto community who worry about where they will be able to hold their funds if more banks follow suit. However, others see it as a positive step towards greater regulation and legitimacy for the industry.
In response to the news, some have suggested that crypto companies need to do a better job of building relationships with traditional financial institutions in order to avoid being shut out of banking services altogether.
At present, there is no clear indication as to why Signature Bank has decided on this course of action or whether other banks are likely follow suit. However, given that many believe increased regulation is inevitable for cryptocurrencies in general, it seems likely that more such announcements will follow in due course.