Vast Bank, an Oklahoma-based bank with $1 billion in assets, announced its decision to exit the cryptocurrency market. Since February 2021, the bank has been offering its customers the opportunity to purchase cryptocurrencies through its partnerships with digital exchange Coinbase and German software company SAP.
The bank announced this week that it has disabled and removed its Vast Crypto Mobile Banking platform from both the Apple and Google app stores, effective January 31. Currently all assets have been liquidated and accounts have been closed. Customers who have funds remaining in their accounts will receive a check mailed to their address on file with the bank.
The decision follows a consent order from the Office of the Comptroller of the Currency (OCC) signed by Vast in October of last year. The decision stated that the bank engaged in unsafe or unsound practices, including those related to “capital, equity and strategic planning, liquidity risk management” and other areas.
“This order is for our cryptocurrency operation,” Vast Bank CEO Tom Biolchini said in a local news report.
“Vast Bank has taken a strategic decision to exit this. We have to separate cryptocurrencies from Vast Bank, which is community banking.”
As part of the terms of resolving the OCC's earlier cease-and-desist letters, the bank was required to prepare new frameworks for managing capital, liquidity risk, interest rate risk, custody and more within 60 days of the ruling. These plans must be approved by the director of the OCC's Special Audit Division before they can be implemented.
*This is not investment advice.