Cryptocurrency fintech firm Unbanked, which provides crypto custody and settlement services, has become the latest company to cease operations due to the harsh regulatory environment for crypto in the United States.
In a May 26 blog post, Ian Kane and Daniel Gouldman, the co-founders of Unbanked, said that when they first opened the company, they believed that building the company in the United States “will be an adventure.” play smart long term” but that didn’t happen.
“While other crypto companies have grown rapidly overseas by avoiding strict regulations, we believe that engaging with regulators and following their tight processes ultimately will ultimately help Unbanked rise to the top,” the founders said.
However, that leads to “a lot of wasted time and excessive costs”, they added.
To put it bluntly, US regulators are actively trying to stop companies (banks and fintechs) from supporting crypto assets – even as companies are trying to do so. correctly and correctly.
Unbanked’s decision to shut down comes despite the company having signed major deals with other companies in recent months, including a partnership with payments giant Mastercard.
The co-founders say the company has been waiting for $5 million in funding, but that hasn’t materialized yet. Kane and Gouldman said they believe the funding has not yet arrived because of the regulatory environment for crypto in the United States, which “ultimately limited our ability to raise capital and run a self-sustaining business.” of Unbanked”.