Vast Bank’s Exit from Cryptocurrency Market and Closure of Crypto App
Vast Bank, based in Oklahoma, United States, has made the decision to leave the cryptocurrency market and shut down its crypto mobile banking application. Starting from January 31, this change marks a shift in the bank’s focus. Through its mobile app developed with SAP and Coinbase, Vast Bank became known as the first US bank to integrate cryptocurrency transactions with traditional banking services. However, due to a consent order issued by the OCC in October 2023, which identified the bank’s engagement in “unsafe or unsound practices,” Vast Bank had to make changes. The order required the submission of a revised capital and strategic plan and the establishment of a compliance committee. In response to these regulatory pressures and the concerns surrounding the custody and trading of digital assets, Vast Bank has decided to exit the crypto market.
Effects of the App’s Shutdown and Instructions for Customers
As a result of the closure, customers using the app are unable to transfer their cryptocurrencies to other wallets or platforms. Instead, they must liquidate their digital assets within the app and withdraw the funds in USD. Vast Bank will issue cashier’s checks to the addresses on file for customers whose accounts have already been closed. The bank also ensures ongoing support for obtaining account statements and other necessary documents even after the account closure.
Conclusion: Vast Bank’s Strategic Decision
Vast Bank’s exit from the cryptocurrency market and the closure of its crypto app are strategic decisions made to distinguish the bank’s cryptocurrency initiatives from its core community banking services. The regulatory pressures and risks associated with digital asset custody and trading have influenced this move. While customers may face inconveniences due to the app shutdown, Vast Bank is committed to providing support throughout the process.
Hot Take: Vast Bank Leaves Crypto Market to Focus on Core Banking
Vast Bank’s decision to shut down its crypto app and exit the cryptocurrency market highlights the challenges and regulatory pressures faced by financial institutions dealing with digital assets. By prioritizing their core community banking services, Vast Bank aims to mitigate risks associated with the custody and trading of cryptocurrencies. This move reflects the need for banks to carefully navigate the evolving landscape of digital finance while ensuring compliance with regulatory guidelines. While customers may need to make adjustments, Vast Bank’s commitment to support them in the transition underscores their dedication to maintaining strong customer relationships.
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