TechFlow reported on May 26 that financial services provider Unbanked announced it will shut down its cryptocurrency services due to stringent requirements from U.S. regulators. The company advised customers to withdraw their funds promptly, with withdrawals remaining open for 30 days.
According to Unbanked, U.S. regulators are actively restricting banks and fintech firms from supporting crypto assets, even when these companies attempt to operate in compliance.
In addition, the company stated that these regulatory pressures have also limited its ability to raise funding. Unbanked recently signed a letter of intent to raise $5 million at a $20 million valuation. Although it did not specify which regulations prevented the funding, the company said it has not yet received the funds. It did not disclose whether it plans to file for bankruptcy.
