1. QiAi QuestsHome
  2. AI & Tech Insights

SilverGate Capital Corp Suspends Payment Network Service due to Risky Business Decision

• AI & Tech Insights • 67 views

It is reported that SilverGate Capital Corp, the parent company of the cryptocurrency bank SilverGate Bank, announced that the company suspended the SilverGate…

SilverGate Capital Corp Suspends Payment Network Service due to Risky Business Decision

It is reported that SilverGate Capital Corp, the parent company of the cryptocurrency bank SilverGate Bank, announced that the company suspended the SilverGate Exchange Network (SEN) payment network service, which originally allowed many cryptocurrency companies with their accounts to send legal currencies to each other instantaneously. Interruption of SEN is a risk-based decision that takes effect immediately. All other deposit-related services are still operating normally.

Cryptocurrency bank SilverGate Bank suspended the exchange network

Interpretation of the news:


The parent company of SilverGate Bank, SilverGate Capital Corp, has announced that it has suspended the services of the SilverGate Exchange Network (SEN), a payment network service that allowed cryptocurrency companies with their accounts to send legal currencies to each other instantaneously. This risky business decision takes effect immediately and all other deposit-related services are still functioning normally.

The cryptocurrency market has been growing rapidly in recent years, and with the rise in popularity of cryptocurrencies, banks and financial institutions have been exploring the potential of offering services that cater to this emerging market. SilverGate Bank is one such institution that has been providing banking services to crypto-related businesses for some time now. SEN was one of the payment network services that the bank offered to its clients to facilitate the transfer of legal currencies.

The fact that the decision to suspend SEN was risk-based has raised some concerns among the users of the service. It is not clear what kind of risks prompted the suspension, but it is possible that the bank encountered some issues related to regulatory compliance, security, or counterparty risks. Given the high volatility and lack of regulation around cryptocurrencies, it is not surprising that banks and financial institutions are cautious when it comes to offering services to cryptocurrency businesses.

The sudden suspension of such a crucial payment network service could have a significant impact on the businesses that had been using SEN to transfer funds. The announcement from SilverGate Capital Corp did not provide any information about how long the suspension will last or what alternatives are available to clients who need to transfer legal currencies.

In conclusion, the suspension of the SilverGate Exchange Network payment network service by SilverGate Capital Corp is a risky decision that is likely to affect the cryptocurrency market. The lack of information about the reasons behind the suspension and the duration of the service interruption is likely to cause concern among cryptocurrency businesses. The decision to suspend the service highlights the challenges that banks and financial institutions face when dealing with the emerging and evolving cryptocurrency landscape.

This article and pictures are from the Internet and do not represent qiAiAi's position. If you infringe, please contact us to delete:https://www.qiaiai.com/ai/4981.html

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 03/04/2023 23:25
Next 03/04/2023 23:50

Related recommendations