The post Crypto Friendly Customers Bank Received FED Warning-Is This the End for Crypto’s Banking Ally? appeared first on Coinpedia Fintech News
Customers Bank, one of the last of crypto friendly American banks has been warned by the Fed. The Federal Reserve, which controls the U.S. money system, has taken action against the bank because they’re not happy with how the bank handles risks and fights against money laundering .This is a big deal, especially because Customers Bank is a key player in the world of cryptocurrency.
Why This Matters for a Crypto Bank
Customers Bank is not just any random bank. It supports cryptocurrency companies with their money needs. The bank has a system called the Customers Bank Instant Token (CBIT), which allows people to make payments in U.S. dollars anytime, 24×7. But because of this close link to crypto, the bank is now facing more checks from the authorities. About one-sixth of the bank’s money comes from the crypto world, so this news hit hard. The bank’s stock price dropped by over 13% after the announcement.
What Happens Next for Customers Bank?
The Federal Reserve is not lettingthe bank off the hook. The bank has not received any penalty yet, but they have given it 60 days to fix highlighted problems. The bank must come up with a detailed plan on how it will improve its risk management and money laundering prevention efforts. If they don’t meet these requirements, they might face tougher penalties. There is huge pressure given the recent issues with other crypto-friendly banks like Silvergate and Signature.
What This Means for the Crypto World
This situation with Customers Bank is part of a bigger trend. Banks dealing with cryptocurrencies are under more scrutiny than ever. The recent problems with Silvergate and Signature have made these issues even more serious. How Customers Bank deals with this could affect other banks and the crypto industry as a whole.