In the world of cryptocurrencies, the most negativity is probably in the case of bankruptcies and fraud. But our news today is not about bankruptcy or fraud. We are faced with the news of a closure. Let’s take a look at the details of our news.
The reason for the crypto company shutting down
Cryptocurrency card and trading platform Unbanked made a statement today. There are references to harsh US regulations in the statement made by the company. Accordingly, the company states that they cannot provide any more services in the face of the relevant regulations. According to the company, these regulations have serious consequences that affect financing.
Unbanked cited legal regulations as the first reason to cease operations. The firm states that regulators in the US are actively trying to stop companies (banks and fintechs) from supporting crypto assets. Moreover, the company has a claim. Even when companies are legally correct and working within the law, the regulator is still behaving badly. That’s why the company says recent regulatory efforts are limiting the company’s ability to operate.
Firm’s activities
Unbanked said it recently signed a $5 million pre-contract for a $20 million investment. He doesn’t specify what regulations prevent him from getting the loan. After all, he stresses that he has not yet received the funds. The company also says that this contract will allow the investment to expand its operations. On the other hand, he adds that if he gets the funds, he will continue his activities.
Unbanked nevertheless advised all customers to withdraw their cryptocurrencies and US dollar balances immediately. The company said it will leave withdrawals open for 30 days. However, he advised customers to start their withdrawals earlier. The company did not specify whether it plans to file for bankruptcy.
Other closed crypto services
Unbanked has been providing crypto card services and trading services since 2017. The company has raised $4 million in funding from nearly 6,000 investors over its five years of operation. This places Unbanked alongside other relatively small crypto companies that have recently closed, including institutional cryptocurrency exchanges Hotbit and Coinloan, and Digital Currency Group’s institutional trading subsidiary TradeBlock.
As the author of Kriptokoin.com, how should we interpret these shutdowns in the cryptocurrency world? Obviously, the company shutdown is not due to its own internal factors. As can be clearly seen, there are more external factors involved. On the other hand, it is not right for the regulator to intervene. Limiting the mobility of legally operating companies does not comply with free market rules. What needs to be done is to pave the way for this technology. The gap in the field will inevitably be to the detriment of everyone. The important thing is that the legal regulations contain breadth.
Collapse in altcoin price after the shutdown
The company-owned cryptocurrency Unbanked (UNBNK) fell sharply after news of the company’s shutdown. The price has lost 90% of its value.
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