Unbanked shuts down crypto services, says US regulations prevented fundraising

Cryptocurrency card and trading platform Unbanked said: May 25th The service will be scaled back due to strict U.S. regulations.

Regulations affecting funding

Unbanked cited regulation as the main reason for the closure. The company said that U.S. regulators are “actively trying to prevent companies (banks and fintechs) from supporting cryptoassets, even if they are doing the right thing and complying with regulations.” He said these regulatory efforts limit the company’s ability to raise capital. capital.

Unbanked recently said it signed terms for a $5 million investment at a $20 million valuation. He declined to say what restrictions prevented him from receiving the loan, but said he did not ultimately receive the funds at this time.

The company said the investment would allow it to expand its business. It said it would resume operations once it receives the funding.

Nevertheless, Unbanked advised all customers to withdraw their cryptocurrency and US dollar balances immediately. The company said it would keep withdrawals open for 30 days, but advised customers to start withdrawing earlier.

The company has not disclosed whether it plans to file for bankruptcy.

Failure of other cryptographic services

Unbanked has been providing crypto card and transaction services since 2017. The company has raised his $4 million from about 6,000 investors in his five years of operation.

That puts Unbanked alongside other smaller, recently closed cryptocurrency firms, including retail crypto exchanges Hotbit and Coinloan, as well as Digital Currency Group’s institutional trading subsidiary Tradeblock. Become.

The post about Unbanked shutting down its cryptocurrency services, US regulations preventing fundraising, first appeared on CryptoSlate.