The American Vast Bank, which became the first US bank with a certificate from the Federal Deposit Insurance Corporation (FDIC), announced the cessation of operations with digital assets.

The administration of the financial institution notified clients that in the near future their cryptocurrency accounts will be canceled and digital assets sold. However, Vast Bank does not intend to accept applications or process transactions to transfer crypto assets to another custodial platform or digital trading platform. According to the bank's statement, the cryptocurrency assets will be cashed out, and the proceeds from the sale will be transferred to the owners via a cashier's check.

Previously, Vast Bank disabled and deleted its mobile banking application that allows cryptocurrency transactions.

Vast Bank explains the decision by pressure from the US Office of the Control of Currency (OCC). In accordance with the order of the financial market regulator, Vast Bank is required to achieve a total capital ratio of at least 13% and a leverage ratio of at least 10% in the next 60 days. As of December 31, 2023, Vast Bank's total capital ratio was 4.75% and its leverage ratio was 2.46%.

Vast Bank launched its crypto banking services in 2021 and allowed customers to freely store and exchange digital assets.

In early February, a group of parliamentarians introduced a proposal to the US Congress to repeal legislation that allows the Securities and Exchange Commission (SEC) to require banks to include customers' digital assets on their balance sheets.

Source - Bits.Media

The first crypto bank in US history has officially left the cryptocurrency market