Unbanked, a Prominent Crypto Fintech Firm, Shuts Down Operations Amidst US Regulatory Challenges
Cryptocurrency fintech firm Unbanked has decided to end operations due to the challenging regulatory environment for cryptocurrencies in the United States. Co-founders Ian Kane and Daniel Gouldman expressed disappointment in the regulatory landscape, which they believe hindered their growth and sustainability. Despite securing significant partnerships, such as one with Mastercard, Unbanked faced difficulties raising capital and maintaining a self-sustaining business, ultimately leading to its closure.
Today, we are making the unfortunate decision to wind down Unbanked.— Unbanked (@UnbankedHQ) May 25, 2023
Please withdraw your funds (crypto + USD) as soon as possible from your accounts.
More details are available here: https://t.co/oWR7m3ZqlM
Unbanked initially believed that establishing a presence in the US would be advantageous in the long term. However, after five years of operation, the company found that engaging with regulators and complying with regulations resulted in wasted time and excessive costs, without yielding the expected benefits. The co-founders cited US regulators actively impeding companies from supporting crypto assets, even when they aimed to do so within the boundaries of regulations.
Unbanked's closure comes at a time when the cryptocurrency industry is facing mounting regulatory challenges. Another notable crypto-focused business, BottlePay, recently announced its closure as well. Both closures highlight the struggles faced by companies operating in this sector, emphasizing the need for careful navigation of the evolving regulatory landscape. The industry's response to these challenges remains uncertain, leaving questions about the future of cryptocurrency businesses in the United States.
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