FDIC orders Signature Bank’s cryptocurrency clients to take out money before 5 April

Reportedly all Signature Bank’s crypto customers are under a hurdle to shifting to another bank. 

Signature Bank was a popular bank in the US and was also known among the crypto companies as the best bank because of its banking support for many crypto companies. This bank was providing instant payment services to institutional clients with the help of its blockchain technology-powered platform signet. The bad economical situation in the US resulted in a bad financial position for this bank. 

On 28 March 2023, a Bloomberg report confirmed that the United States Federal Deposit Insurance Corporation (FDIC) reached out to the Signature Bank’s crypto clients and ordered them to withdraw their deposits to another bank as soon as possible before 5 April. 

The FDIC agency confirmed that Depositors who have their accounts closed will receive a check to their registered address, and should ensure that their addresses are up-to-date. 

Earlier on 19 March, New York Community Bancorp (NYCB) purchased almost all the assets of Signature Bank but abandoned its digital assets’ customers & assets. NYCB also decided not to support Signature Bank’s real-time payment platform Signet.

FDIC vs Crypto

Initially, when Silicon Valley Bank (SVB) & Signature Bank reported bad financial positions then at that time many giant media reports claimed that FDIC will not support the crypto-related assets of these banks & also will not revive the crypto depositors of these banks. 

Later the FDIC agency officially responded on this matter and confirmed that the agency is not planning to take anti-crypto decisions but the bank’s asset purchaser(s) may take anti-crypto decisions. 

These things are showing that crypto companies are not feeling ok under the US jurisdiction. On one side top regulated, & successful crypto companies are facing regulatory heat, on the other side they are also failing to get banking partners.

Read also: US senator wants self-crypto custody wallets ban for Americans