Silvergate Bank and Signature Bank's Exit from Crypto What We Know Now

Silvergate Bank and Signature Bank introduced they could be exiting the cryptocurrency market. The selection turned into made in reaction to extended regulatory scrutiny, as new guidelines require banks to make certain their clients aren't the use of cryptocurrency for crook purposes.

The banks had been laid low with those guidelines before. In 2016, they have been fined $10 million through the Consumer Financial Protection Bureau (CFPB) for failing to save you clients from the use of their credit score playing cards to shop for cryptocurrencies like Bitcoin and Ethereum. The CFPB has been investigating banks that provide offerings associated with cryptocurrencies due to the fact that 2014.

We apprehend that there are numerous blessings related to digital currencies, Signature Bank CEO David Siegel stated in a assertion on Wednesday. However, we don't have any desire however to stop providing them at this time.