Tulsa, Oklahoma, Monday, February 19, 2024 – US Bank Vast Bank, which previously allowed customers to buy, sell, and hold cryptocurrency directly within checking accounts, announced its exit from the crypto business on January 31, 2024. 1
Impacted customers of Vast Bank’s now-discontinued crypto app cannot transfer their cryptocurrency holdings to other platforms or wallets. They must liquidate their digital assets within the app and withdraw the equivalent USD funds.
Vast Bank said it would issue cashier’s checks mailed to their registered addresses for customers whose accounts have already been closed. The bank additionally assures ongoing support for obtaining account statements and other documents, even after account closure.
“To strategically align our operations, effective Wednesday, January 31st, 2024, we will be disabling and removing the Vast Crypto Mobile Banking application from Google and Apple, which means your Vast Crypto Mobile Banking account(s), including any digital assets held in custody, will be liquidated and closed,” Vast Bank said in its website.
This follows an October 2023 consent order issued by the Office of the Comptroller of the Currency (OCC) citing “unsafe or unsound practices” in Vast Bank’s crypto risk management.
Launched in 2021, Vast Bank’s mobile crypto app was the first in the US, allowing crypto alongside traditional fiat currency in checking accounts.
The OCC order’s specific concerns remain undisclosed, but Vast Bank will liquidate the remaining customer crypto and remove its app from stores.
The move reflects banks’ regulatory and risk management challenges in entering the crypto space.
Concerns about money laundering, market volatility, and operational complexities associated with cryptocurrency have led federal regulators, including the OCC, to express caution regarding bank involvement.
While other banks have explored crypto services, widespread adoption remains limited due to these challenges.
- Vast Bank: https://www.vast.bank/crypto-faq[↩]
