Unbanked, a cryptocurrency fintech firm that provides cryptocurrency custody and payment services, has become the latest company to close shop while citing the harsh regulatory environment for cryptocurrencies in the United States. In a blog post on May 26, Unbanked co-founded ers Ian Cain and Daniel Gouldman said that when it first opened, it thought establishing the company in the US "would be a smart long-term investment." , despite the fact that it did not, five years later.
“While other cryptocurrency companies have grown rapidly overseas by avoiding strict regulation, we believe engaging with regulators and following their arduous process will ultimately set Unbanked apart,” the executives said. Instead, the decision resulted in "significant wasted time and prohibitive costs," they added.
“Frankly, US regulators are actively trying to prevent companies (banks and fintechs) from backing crypto assets even if those companies are trying to do the right thing by the regulations.” The decision to cease operations comes despite Unbanked signing major deals with other companies in recent months, including a tie-up with payments giant Mastercard. The co-founders said the company had been hoping for a $5 million infusion, but it still hasn't happened. Kane and Gouldman said they believed this was a result of the US cryptocurrency regulatory environment, which “ultimately limited Unbanked's ability to raise capital and operate a self-sustaining business.”
“Three weeks ago, Unbanked signed a term sheet for an investment of $5 million at a valuation of $20 million, which will enable us not only to continue operating, but also to scale. As of now, we have not received these funds ,” the company explained. The firm has urged its customers to begin withdrawing all funds "as soon as possible." Unbanked is not alone in its plight.
Bitcoin, May 23, A lightning network payments company called BottlePay is also shut down, with all services set to shut down completely until June 24. It did not provide a reason for the shutdown. Just a day earlier, cryptocurrency exchange HotBit announ ced it would Also be shutting down, urging all of its customers to withdraw funds from the platform as soon as possible.
While it points to the collapse of FTX and the temporary decoupling of USD Coin, It had a significant impact on its operations, with Hotbit claiming that the main reason for the deterioration came from a former team member who became the subject of an investigation in August According to the exchange, the investigation forced it to cease operations for several weeks. On May 12, a partially owned NFT platform called Teressa also closed its doors for good, claiming that its corporate structure and financial situation would prevent. it from continuing to operate .
In a now-deleted tweet, Tesera co-founder Andy Chorlian said it had made the "very difficult decision" to wind down all operations in the coming weeks.
