Financial services provider Unbanked announced that it will shut down, leading the UNBK token to crash. The company has a lack of funding and is facing a tough time with the U.S. regulatory landscape.
Crypto-focused financial services provider Unbanked has announced that it has been forced to shut down. The company published a post on May 26 saying that it was winding down, citing the regulatory environment and a lack of funding as the primary reasons for the decision.
Unbanked Hit a Brick Wall
The post explained that “the crypto landscape 5 years ago was very different from today” and that “US regulators are actively trying to stop companies (banks and fintechs) from supporting crypto assets – even when the companies are trying to do it correctly and by the book.”
It also stated that it had signed a term sheet for an investment of $5 million dollars at a $20 million valuation. It has not yet received these funds, but Unbanked will continue operations and expand if it does come through. Furthermore, it is also exploring other funding sources.
The company has asked customers to withdraw their funds as quickly as possible. Customer funds are maintained separately from business funds, and the withdrawal functionality will be open for the next 30 days.
The company also has a token, UNBNK, which has dropped sharply following the announcement. The token is down by over 85% and is currently priced at $0.0002738.
Unbanked was a financial services provider that offered such services as global bank accounts and cards. It also offered the ability to buy and sell crypto and staking rewards.
Launched in 2019, Unbanked served both U.S. and international entities and had 25 companies in several countries using its services. It managed to raise $4 million over the span of five years.
US Regulatory Action Forcing Crypto Firms To Shut Down
The United States has been cracking down on crypto firms, forcing them to exit or shut down. Even exchanges as large as Coinbase have spoken about potentially relocating headquarters.
Beaxy and Bittrex are two other examples of platforms that have been forced to shut down or exit. The latter stated that it shut down its U.S. crypto exchange because of the regulatory environment. This seems to be the common point of contention, namely that the regulatory landscape is unfavorable.
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