Krypto had no relationship to close the Signature Bank: New York Finance Regulator

Krypto had no relationship to close the Signature Bank: New York Finance Regulator

Adrienne A. Harris-superintendent of the New York State Department of Financial Services (NYDFS)-said the premise that the bank's connections to crypto-related companies are behind their closure was "ridiculous".

The financial institution showed serious operational difficulties last month and was closed by American supervisory authorities to prevent further problems

Krypto was not the reason

The head of the NYDFS recently Interview that the responsible wax dogs have closed the signature and none Liquidity management protocols had to comply with payout requests.

As such, she completely rejected the assumption that the relationship between the organization to the crypto industry had something to do with her failure:

"The idea that the in-possession of signature was about crypto and this is 'Choke Point 2.0' is really ridiculous."

On the other hand, the NYDFS previously urged Preserver-Spaces = "True"> to separate the cryptocurrency stocks of the customers from their own assets, because a mixture is significant Financial losses could lead to investors.

"In addition, the department expects a VCE depot bank to make its standard openings and customer agreements for customers on their website in accordance with the laws and regulations of New York," added the watch dog.

Harris spoke in detail about the cryptocurrency sector and argued that he still lacks ripe despite his growing popularity. She said her team found that the compliance programs of numerous companies in this area consisted of "tons of paper" and Excel tables:

"There is still a lack of ripening of the banking secret law to combat money laundering [compliance] and cyber security. We are excited about the day when these systems ripen and scale, as the business side does."

She said that such companies would have to use the right technology, including blockchain analysis tools, and hire trained personnel for their operation.

The affected companies from the collapse of signature

The closure triggered Data Preserver-Spaces = "True"> Millions for many cryptofocussed companies since they were involved in the bank. The Coinbase Stock Exchange in the USA held $ 240 million in signature, while the blockchain infrastructure platform-Paxos-stuck $ 250 million.

The Bankrotte crypto loan-Celsius Network-is next on the list. The unsecured creditor's committee said that all inserters were "made healthy".

Selected image with the friendly approval of Bloomberg

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