Unbanked Closes Doors Amidst Stringent US Restrictions

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Key takeaways:

  • Unbanked announced that it would discontinue operations due to tight restrictions.
  • The firm stated that withdrawals would be available for 30 days; it advised clients to start their withdrawals sooner.

Due to strict US restrictions, Unbanked, a cryptocurrency card and trading platform, announced that it would discontinue operations.

According to its official announcement on May 25, the platform’s decision to stop operating was primarily motivated by the stringent rules imposed by US regulators.

The announcement also expresses its displeasure, as Unbanked claims that American officials are actively attempting to stop banks and fintech firms from supporting cryptocurrency assets, even when those firms are making efforts to do so correctly and in accordance with legislation.

These things make it difficult for the business to raise money. Unbanked is understood to have just signed an open letter of intent to invest with the goal of raising $5 million at a $20 million value. The company claimed it had not accepted funds, although it did not mention what laws forbade them from doing so. The business claimed that the funding would have allowed it to grow. It declared that it would resume operations if it received funds. 

Despite this, Unbanked encouraged all customers to withdraw their Bitcoin and USD holdings promptly. Although the firm stated that withdrawals would be available for 30 days, it advised clients to withdraw sooner. Additionally, the company remained mum on whether it intended to declare bankruptcy.

Unbanked asserts that regardless of the asset, all customer monies have always been kept separate from business activities and maintained at 1:1. The platform’s white-label programs and all clients should begin withdrawing all funds, including bitcoin and USD, as soon as feasible.

Despite signing significant agreements with other businesses recently, including a relationship with payments juggernaut Mastercard, Unbanked has decided to cease operations.

Hotbit recently stated that it would be ceasing all business operations after five years of existence. The revealed choice was justified by deteriorating operational circumstances, including decreased cash flow, a shifting cryptocurrency attitude, and tougher regulatory actions. For five years and eleven months, the Hotbit team claims to have had the privilege of participating in a remarkable crypto exhibit with 5 million users. Before June 21, users were encouraged to withdraw their assets. 

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