Breaking ground in the world of banking, Vast Bank proudly announced themselves as the pioneer of U.S. financial institutions to offer customers the ability to buy, sell, and store cryptocurrencies alongside their traditional checking accounts. However, in a surprising turn of events, the bank closed its mobile crypto app last week, leaving customers in shock.
In an official statement released on their website, Vast Bank revealed their decision to exit the crypto industry, promising to refund any remaining digital assets through a process of liquidation. The bank also announced that their mobile banking app, specifically designed for crypto transactions, will be disabled and removed from Google and Apple platforms by January 31st, 2024.
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This unexpected move marks a strategic shift for the bank, as stated in their announcement, to align their operations. It also marks the end of their partnership with Coinbase and SAP, which resulted in the creation of a cutting-edge mobile banking app that seamlessly integrated cryptocurrency transactions.
Former CEO Brad Scrivner had confidently stated in a 2021 CNBC interview that Vast Bank was the first national bank to offer customers the convenience of buying and selling cryptocurrencies directly from their bank accounts. But with the closure of their mobile app, it seems this unique feature will now be a thing of the past for Vast Bank and its customers.
In a sudden and unexpected move, Vast Bank made its departure from the crypto world in October 2023. The Office of the Comptroller of the Currency (OCC) declared its disapproval, issuing a stern consent order that accused the bank of engaging in “unsafe or unsound practices” related to risk management and control, particularly in their involvement with cryptocurrencies.
In the fall of 2023, Vast Bank made a bold declaration, vowing to return to its traditional banking roots. This announcement came after a tumultuous journey into the world of digital banking, with the addition of cryptocurrency services in 2019. However, as the regulatory landscape and economic climate continued to shift, the bank faced uncertainty in its ability to predict future growth.
The decision to close its crypto mobile app was met with curiosity and speculation, as Vast Bank’s official statement offered little explanation. But in an exclusive interview with local news outlet News on 6, Vast Bank’s chairman Tom Biolchini shed light on the matter. He revealed that the closure was a direct response to an order from the OCC, highlighting the complexities of navigating the ever-evolving world of digital currencies.
Biolchini emphasized that their exit from the crypto market was a strategic move, emphasizing the importance of staying true to their community banking roots. He confidently stated that once regulators see their commitment to leaving crypto behind and refocusing on their core values, Vast Bank will be back on track to achieving their initial goals.
With the landscape of cryptocurrency regulations still in flux, financial institutions may find themselves walking a delicate tightrope between innovation and compliance. But for Vast Bank, their recent decision to prioritize their traditional banking services signals a return to their true identity and unwavering dedication to their community.
