Another Year, Another Crypto Roller Coaster
The previous year in the cryptocurrency realm was quite the wild ride, reminiscent of a ride at an amusement park where not only do you get dizzy, but you also lose track of your wallet. From epic market crashes to the infamous FTX scandal that had more twists than a soap opera, it’s been a turbulent journey for investors and institutions alike.
Metropolitan Bank Waves Goodbye to Crypto
In a notable development, the Metropolitan Bank Holding Corp decided to bid adieu to its crypto-assets segment. Their departure was as unexpected as your favorite ice cream truck not showing up on a hot summer day. This decision, as stated by the corporation, was prompted by the not-so-great happenings in the crypto world and some regulatory curveballs aimed at banks dabbling in crypto-assets.
Money Matters (or Lack Thereof)
MCB, which has been gradually phasing out its crypto dealings since 2017, claims this decision will have little financial impact. They currently only have a handful of active institutional crypto clients contributing to a minuscule percentage of revenue and deposits. That’s basically like telling your friends you’re out of pizza at a party because, unfortunately, you only ordered two slices.
The Shadow of FTX
As the dust settles from the FTX debacle, the attention on crypto remains as strong as ever. With the ongoing legal turmoil surrounding that case, crypto isn’t exactly enjoying a spa day right now. And let’s face it, the spotlight isn’t dimming anytime soon.
Regulators on the Attack
Looking ahead, regulators in the United States are sharpening their pencils and preparing to scrutinize the crypto industry more than ever. Agencies like the Securities and Exchange Commission, the Financial Accounting Standards Board, and the Internal Revenue Service are ready to step up their game. If you’re in the crypto scene, you might want to keep your helmet on.
On the Radar: Binance Under the Microscope
As if FTX wasn’t enough to handle, Binance now finds itself on the hot seat, facing allegations of money laundering violations in the U.S. Not exactly a relaxing time for them, and certainly a big topic of discussion for hedge funds with ties to the exchange.
A Glimmer of Hope in DeFi
Despite the scrutiny and investigations making news headlines like a celebrity gossip column, some industry insiders haven’t lost their optimism for decentralized finance (DeFi). They highlight a potential comeback, like that one friend’s ill-fated belief they can still win the dance-off despite tripping over their own feet.
