Unbanked, a crypto fintech corporation, has announced the end of its activities in an unexpected change of events. The creators, Ian Kane and Daniel Gouldman expressed their dissatisfaction with the regulatory environment for cryptocurrencies in the United States. According to them, this prompted their ultimate decision to halt operations.
Unbanked takes a different approach than other crypto startups that achieved success by operating abroad and skirting laws. They opted to operate on their own market and work with authorities to acquire a competitive advantage. However, they ended up shooting themselves in the foot with this one since the plan failed.
According to the creators, US regulations are making it impossible for banks and other decentralized finance (DeFi) providers to support crypto assets. Even if they strive to follow the rules, this is difficult for them. Despite potential relationships, such as a collaboration with Mastercard, Unbanked had challenges. These issues were mostly related to obtaining much-needed funds from investors.
🚫 Unbanked, the innovative crypto fintech, bids farewell as it faces the regulatory storm in the US.
🌐 Despite the setback, the crypto industry marches on!
— Walletor (@walletorapp) May 26, 2023
Despite the fact that the firm signed an agreement for the investments, the cash did not materialize. The creators blame the unfriendly regulatory environment for cryptocurrencies in the United States. As a result, Unbanked has encouraged its customers to withdraw their crypto and US dollars within a 30-day period.
The closure of Unbanked sheds a lot of light on the difficulties that many crypto exchanges and projects face. Those operating in the United States, in particular, have been subjected to numerous regulatory changes. Unbanked attempted to comply with regulations, but this put them at a significant disadvantage.
The United States and other countries have been working hard to put new crypto regulations in place in order to make the crypto space much safer. This is also one of the reasons why there has been a lot of regulatory-related news recently on social media platforms.
It is unclear whether Unbanked intends to file for bankruptcy in its entirety. But don’t worry, we’ll try to report everything as soon as possible. The closure of the company serves as a cautionary tale for all new projects. It may also help push for regulatory relief in the United States.
Overall, as the industry evolves, it is critical for regulators to collaborate with companies to make the space much safer. They must try to please everyone, including the government, ordinary citizens, and businesses.