The Crypto Industry Left Behind as First US Bank Empowers Customers to Retain Digital Assets

The American Vast Bank Exits Crypto Industry

The American Vast Bank, known for being the first in the United States to provide tools for working with cryptocurrencies, has made the decision to leave the crypto industry. The announcement was made on the bank’s website, stating that they will be disabling and removing their mobile application for conducting transactions with digital assets.

“To strategically align our operations, effective Wednesday, January 31st, 2024, we will be disabling and removing the Vast Crypto Mobile Banking application from Google and Apple, which means your Vast Crypto Mobile Banking account(s), including any Digital Assets held in custody, will be liquidated and closed.”

Vast Bank statement

In 2019, Vast Bank introduced tools for working with cryptocurrency. However, it is speculated that pressure from the U.S. Office of the Comptroller of the Currency (OCC) may have influenced their decision to withdraw from digital assets.

Vast Bank’s Crypto Journey

In September 2021, Vast Bank made headlines as the first commercial bank in the United States to offer clients the ability to engage in cryptocurrency transactions. Based in Tulsa, Oklahoma, the bank launched its Crypto Banking service, becoming the first federally authorized bank in the country to facilitate buying, selling, and storing cryptocurrencies directly through a bank.

Hot Take: Vast Bank’s Departure Raises Questions

The exit of American Vast Bank from the crypto industry raises questions about regulatory pressures and challenges faced by banks venturing into this emerging sector. While their initial foray into cryptocurrencies made them pioneers in the field, their decision to withdraw highlights potential hurdles faced by traditional financial institutions when embracing digital assets. It remains to be seen whether other banks will follow suit or if this is an isolated case. As the crypto landscape continues to evolve, the relationship between banks and cryptocurrencies will undoubtedly remain a topic of interest and scrutiny.