Financial services provider Unbanked announced that it will shut down, leading the UNBK cryptoย token to collapse. The company has a lack of financing and is facing a tough time with the Unitedย States regulatory landscape.
Crypto-focused financial services provider Unbanked has announced that it has been forced to shut down. The company wasย releasedย a post on May 26 saying that it was winding down, citing the regulatory environment and a lack of financing as the primary reasons for the decision.
Unbanked Hit a Brick Wall
The post stated that โthe cryptocurrency landscape 5 years ago was very different from todayโ and that โ Unitedย States regulatoryย authorities are actively attemptingย to stop corporations (banks and fintechs) from supporting cryptocurrency assets โ even when the corporations are attemptingย to do it correctly and by the book.โ
It likewise indicatedย that it had signed a term sheet for an financing of $5 Million dollars at a $20 Million valuation. It has not isย still received these funds, but Unbanked will continue operations and expand if it does come through. Furthermore, it is likewise exploring other financing sources.
The company has requested customers to withdraw their funds as quickly as possible. Customer funds are maintained separately from business funds, and the withdrawal functionality will be open for theย following 30 days.
The company likewise has a cryptoย token, UNBNK, which hasย decreased sharply following the notice. The cryptoย token is down by over 85 percent and is asย ofย now priced at $0.0002738.
Unbanked was a financial services provider that offered such services as worldwide bank accounts and cards. It likewise offered theย potential to buy and sell cryptocurrency and staking rewards.
Launched in 2019, Unbanked served both Unitedย States and international entities and had 25 corporations in plentyย of countries using its services. It managed to raise $4 Million over the span of 5 years.
Unitedย States Regulatory Action Forcing Cryptocurrency Corporations To Shut Down
Theย Unitedย States has been cracking down on cryptocurrency corporations, forcing them to exit or shut down. Even exchanges as large as Coinbaseย Cryptoย exchange have spoken about potentially relocating headquarters.
Beaxy and Bittrex are two other examples of platforms that have been forced to shut down or exit. The latter indicatedย that it shut down its Unitedย States cryptocurrency exchange asย aย resultย of the regulatory environment. This appearsย to be the common point of contention, namely that the regulatory landscape is unfavorable.
