People with direct knowledge of the matter say banks that were previously open to working with crypto clients, including JPMorgan and Bank of America, are now turning away.
It’s certainly been enough to deter banks that readily partnered with crypto firms just months ago to back off. Evolve, which partners with digital banking platform Juno, says it plans to wind down all its existing crypto partnerships.Metropolitan Bank, which once counted exchange Crypto.com among its clients, announced in January that it would exit the crypto space because of the increased regulatory scrutiny on banks that service the industry.
Gemini, the exchange founded by the billionaire Winklevoss twins was recently sued by the SEC for offering unregistered securities, also remains a client of JPMorgan, Goldman Sachs, State Street and Fidelity Investments, according to a Monday statement from the company.STOCK MARKET EXPERT SAYS FED WILL PIVOT AND CUT RATES 'VERY SHORTLY'
Some of the banks contacted by FOX Business were reluctant to speak on the record about their crypto partnerships due to the heightened scrutiny around the industry and fear of causing alarm to"The banking system itself is a mystery to many Americans, let alone the crypto industry," said an executive of one crypto-friendly bank. "We don’t want to spook our customers by making them think something like Silvergate or Signature could happen to us.
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