Crypto fintech firm Unbanked, which provides crypto custody and payment services, has decided to shut down after succumbing to regulatory pressure.
Regulatory pressures continue to wreak havoc on many companies. Regulators, who have increased their pressure in recent months, have become one of the biggest obstacles in front of the market. The creation of a tough regulatory environment for crypto in the US led to the closure of Unbanked. In a blog post published on May 26, Unbanked co-founders Ian Kane and Daniel Gouldman made striking statements. The duo said they believed it would be a smart long-term play for the company to be established in the US, but that wasn’t the case.
Today, we are making the unfortunate decision to wind down Unbanked.
Please withdraw your funds (crypto + USD) as soon as possible from your accounts.
More details are available here: https://t.co/oWR7m3ZqlM
— Unbanked (@UnbankedHQ) May 25, 2023
Statements from Company Officials Received
Ian Kane and Daniel Gouldman stated that the decision to open a company in the USA caused a lot of time loss and excessive costs. The duo, who took a harsh stance against the regulators, expressed their views as follows;
“To be clear, US regulators are actively trying to prevent companies (banks and fintechs) from backing crypto assets – even if companies try to do it right and by the book.”
Unbanked’s decision to cease operations comes despite the company’s recent deals with several companies, including Mastercard. “While other crypto companies have grown rapidly by avoiding strict regulation, we believed that engaging with regulators and following their tough processes would ultimately bring Unbanked forward,” the executives said.
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