Silvergate Bank to Cease Operations in Compliance with Regulations
Silvergate Bank, a major banking partner for various cryptocurrency firms, has announced that it will end its operations in line with regulatory requirements. The holding company for Silvergate Bank, Silvergate Capital Corporation, released a press statement on Wednesday, stating that the bank will immediately wind down its operations and undergo voluntary liquidation.
The press release cited recent industry and regulatory developments as the reason for the bank’s decision. The wind down process will include the full repayment of all deposits. Silvergate Bank will also discontinue the Silvergate Exchange Network (SEN), which it announced previously on March 3, 2023, on its website.
Despite the bank’s closure, all other deposit-related services will remain operational. Centerview Partners LLC has been appointed as the financial advisor to Silvergate Bank for the liquidation process.
Silvergate Bank has been a significant banking partner for cryptocurrency firms, providing services such as wire transfers, foreign exchange, and custody services. The bank’s decision to cease operations is expected to have a significant impact on the cryptocurrency industry, as many firms relied on its services.
The bank’s closure comes amid increasing regulatory scrutiny of the cryptocurrency industry. Regulators have been cracking down on cryptocurrency firms, citing concerns over money laundering, fraud, and other illicit activities.
The closure of Silvergate Bank is likely to be a blow to the cryptocurrency industry, which has been struggling to gain mainstream acceptance. However, some experts believe that the closure could lead to the emergence of new banking partners for cryptocurrency firms, as the industry continues to evolve and mature.
