Unbanked Takes a Hit

In a bittersweet twist, the crypto fintech firm Unbanked has decided to shut its doors, citing the harsh regulatory terrain in the United States. This decision is a head-scratcher for many, particularly since the company’s co-founders, Ian Kane and Daniel Gouldman, took a gamble five years ago that building in the U.S. would pay off. Spoiler alert: It didn’t.

The High Cost of Compliance

Unbanked took the noble path of trying to work with U.S. regulators, but as they put it, “this decision led to a lot of wasted time and excessive costs.” Apparently, in the crypto universe, the phrase “playing by the rules” can be akin to walking barefoot through a field of Legos—painful and not particularly rewarding.

Promises of Funding Gone Awry

Despite signing a term sheet for a $5 million investment, Unbanked found itself still waiting for that check to clear. Kane and Gouldman expressed frustration as they argued that the prevailing regulatory climate strangled the firm’s ability to raise capital or operate sustainably. It’s like waiting for a bus that never arrives while watching your peers hop into flashy new cars.

A Trend in Turmoil

Unbanked isn’t the only one feeling the burn. The closures seem to be part of a growing trend. Just days before Unbanked’s announcement, Bitcoin payment platform BottlePay and crypto exchange HotBit also announced they were closing down. It’s as if the crypto world is having an unintentional group therapy session over existential dread—but without the comfort of actual therapy.

What’s Next for Crypto?

With regulators tightening their grip, companies that once thrived in this digital frontier are now left to scramble for survival. There’s a pressing question hanging in the ether: What does the future hold for other crypto firms? Will they cling to the hope of regulations lightening their load, or will they also go the way of unbanked?