Unbanked, a fintech company specializing in cryptocurrency custody and payments services, has announced its closure due to the challenging regulatory environment surrounding cryptocurrencies in the United States. Co-founders Ian Kane and Daniel Gouldman expressed their initial belief that establishing the company in the U.S. would be a favorable long-term strategy. However, after five years of operation, they concluded that this decision did not yield the anticipated outcomes.
While many crypto companies thrived by operating offshore to evade stringent regulations, Unbanked chose to engage with regulators and comply with their demanding processes, hoping it would ultimately benefit the company. Unfortunately, this approach resulted in significant time wastage and excessive costs, according to the executives.
In a straightforward statement, Kane and Gouldman pointed out that U.S. regulators actively obstruct companies, including banks and fintech firms, from supporting crypto assets, even when they aim to operate within the confines of existing regulations.
Despite recent high-profile partnerships, such as one with payment giant Mastercard, Unbanked has decided to wind down its operations. The co-founders cited a lack of anticipated funding as a primary reason for this decision. Although they expected a $5 million investment, the funds have not materialized. Kane and Gouldman attribute this failure to the regulatory climate surrounding cryptocurrencies in the United States, which restricted Unbanked’s ability to secure capital and sustain its business.
Unbanked has advised its clients to initiate the withdrawal of their funds as soon as possible, signaling the finality of the company’s closure.
