• Signature Bank was closed by the New York State Department of Financial Services (NYDFS) on March 13
• The closure decision was not related to the bank’s cryptocurrency dealings, according to NYDFS.
• Despite the denial, Coinbase and other crypto firms may have to look for a different banking service provider.
Signature Bank Shutdown
On March 13, the New York State Department of Financial Services (NYDFS) announced that Signature Bank had been shut down.
Crypto Connection Denied
The regulatory body denied any crypto-related reasons behind the closure of this financial institution. A spokesperson from NYDFS mentioned that „the decisions made over the weekend had nothing to do with crypto“.
Former Representative’s Suggestion
Former United States representative Barney Frank suggested that the bank’s closure was crypto-related and sent an „anti-crypto message“ from authorities. However, this suggestion does not fit in with NYDFS‘ denial.
The Federal Deposit Insurance Corporation (FDIC) took control over all deposits in order to ensure customers receive insured deposits back. Furthermore, Treasury Department revealed an emergency plan to return all customer funds, not just insured ones.
The shutdown of Signature Bank is one in a series of banks closing down recently including Silicon Valley Bank and Silvergate Bank.