Vast Bank Closes Cryptocurrency App, Exits Digital Asset Market Amid Regulatory Pressures
Vast Bank, headquartered in Oklahoma, United States, has announced its departure from the cryptocurrency market, coupled with the closure of its crypto mobile banking application. This decision, effective as of Jan. 31, marks a shift in the bank's operational focus.
Introduced in 2021, Vast Bank's mobile app, developed in collaboration with German software company SAP and crypto exchange Coinbase, allowed customers to buy, sell, and hold cryptocurrencies alongside their traditional checking accounts. This service positioned Vast Bank as the first U.S. bank to integrate cryptocurrency transactions into a conventional banking framework.
However, a recent statement on the bank's website reveals a strategic reorientation:
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.
This closure comes in the wake of a consent order issued by the Office of the Comptroller of the Currency (OCC) in October 2023, which cited the bank for engaging in "unsafe or unsound practices." These practices ranged from concerns over capital ratios and strategic planning to deficiencies in project management, liquidity, and interest rate risk management, among others. The order necessitated Vast Bank to submit a revised capital and strategic plan and to establish a compliance committee to address these issues.
Strategic Decision to Exit Crypto Market
Tom Biolchini, Vast Bank's Chief Executive, reflected on the decision to exit the crypto market as a "strategic decision," citing the need to distinguish the bank's cryptocurrency initiatives from its core community banking services. This move aligns with the bank's response to regulatory pressures and the desire to mitigate risks associated with digital asset custody and trading.
Customers affected by the app's shutdown have been instructed that they cannot transfer cryptocurrencies to other wallets or platforms. Instead, they must liquidate their digital assets within the app and withdraw the USD funds. For those with accounts already closed, Vast Bank has committed to issuing cashier's checks mailed to the addresses on file. Additionally, the bank assures ongoing support for obtaining account statements and other documents post-account closure.
Broader Implications for the Banking Industry
Does this move by Vast Bank represent the broader banking industry's reluctance to deal with cryptocurrency and digital asset services? Share your thoughts and opinions about this subject in the comments section below.
Frequently Asked Questions
What is the cost of gold IRA fees
A monthly fee of $6 for an Individual Retirement Account is charged. This includes account maintenance and any investment costs.
If you wish to diversify your portfolio, you may need to pay additional fees. These fees vary depending on what type of IRA you choose. Some companies offer free checking accounts, but charge monthly fees to open IRA accounts.
Most providers also charge an annual management fee. These fees range between 0% and 1 percent. The average rate is.25% per year. However, these rates are typically waived if you use a broker like TD Ameritrade.
How much should precious metals be included in your portfolio?
First, let's define precious metals to answer the question. Precious metals refer to elements with a very high value relative other commodities. This makes them highly valuable for both investment and trading. Today, gold is the most commonly traded precious metal.
There are however many other types, including silver, and platinum. While gold's price fluctuates during economic turmoil, it tends to remain relatively stable. It is also relatively unaffected both by inflation and deflation.
As a general rule, the prices for all precious metals tend to increase with the overall market. They do not always move in the same direction. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. Investors are more likely to expect lower interest rates making bonds less attractive investments.
In contrast, when the economy is strong, the opposite effect occurs. Investors choose safe assets such Treasury Bonds over precious metals. They become less expensive and have a lower value because they are limited.
To maximize your profits when investing in precious metals, diversify across different precious metals. You should also diversify because precious metal prices can fluctuate and it is better to invest in multiple types of precious metals than in one.
How does a gold IRA work?
The Gold Ira Accounts are tax-free investment options for those who want to make investments in precious metals.
You can purchase gold bullion coins in physical form at any moment. You don’t have to wait to begin investing in gold.
You can keep gold in an IRA forever. You won't have to pay taxes on your gold investments when you die.
Your heirs can inherit your gold and avoid capital gains taxes. And because your gold remains outside of the estate, you aren't required to include it in your final estate report.
To open a Gold IRA, you'll need to first set up an Individual Retirement Account (IRA). After you have done this, an IRA custodian will be assigned to you. This company acts like a middleman between the IRS and you.
Your gold IRA Custodian will manage the paperwork and submit all necessary forms to IRS. This includes filing annual returns.
After you have established your gold IRA you will be able purchase gold bullion coin. The minimum deposit required to purchase gold bullion coins is $1,000 The minimum deposit is $1,000. However, you will receive a higher percentage of interest if your deposit is greater.
You will pay taxes when you withdraw your gold from your IRA. You will be liable for income taxes and penalties if you take the entire amount.
You may not be required to pay taxes if you take out only a small amount. However, there are some exceptions. There are some exceptions. For instance, if you take out 30% or more from your total IRA assets, federal income taxes will apply plus a 20 percent penalty.
Avoid taking out more that 50% of your total IRA assets each year. Otherwise, you'll face steep financial consequences.
What are the pros and cons of a gold IRA?
An Individual Retirement Account is a more beneficial option than regular savings accounts. You don't pay taxes on any interest earned. This makes an IRA great for people who want to save money but don't want to pay tax on the interest they earn. But, this type of investment comes with its own set of disadvantages.
If you withdraw too many funds from your IRA at once, you may lose all your accumulated assets. Also, the IRS may not allow you to make withdrawals from your IRA until you're 59 1/2 years old. A penalty fee will be charged if you decide to withdraw funds.
Another disadvantage is that you must pay fees to manage your IRA. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management costs ranging from $10-50.
If you prefer your money to be kept out of a bank, then you will need insurance. In order to make a claim, most insurers will require that you have a minimum amount in gold. You might be required to buy insurance that covers losses up to $500,000.
If you choose to have a gold IRA you will need to establish how much gold to use. Some providers limit the number of ounces of gold that you can own. Some providers allow you to choose your weight.
It's also important to decide whether or not to buy gold futures contracts. Futures contracts for gold are less expensive than physical gold. Futures contracts offer flexibility for buying gold. They let you set up a contract that has a specific expiration.
Also, you will need to decide on the type of insurance coverage you would like. The standard policy does NOT include theft protection and loss due to fire or flood. It does include coverage for damage due to natural disasters. Additional coverage may be necessary if you reside in high-risk areas.
You should also consider the cost of storage for your gold. Storage costs are not covered by insurance. Banks charge between $25 and $40 per month for safekeeping.
You must first contact a qualified custodian before you open a gold IRA. A custodian maintains track of all your investments and ensures you are in compliance with federal regulations. Custodians cannot sell your assets. Instead, they must keep your assets for as long you request.
Once you've decided which type of IRA best suits your needs, you'll need to fill out paperwork specifying your goals. Your plan should include information about the investments you want to make, such as stocks, bonds, mutual funds, or real estate. Also, you should specify how much each month you plan to invest.
After completing the forms, send them along with a check or a small deposit to your chosen provider. The company will review your application and send you a confirmation letter.
Consider consulting a financial advisor when opening a golden IRA. Financial planners have extensive knowledge in investing and can help determine the best type of IRA to suit your needs. They can help you find cheaper insurance options to lower your costs.
How Much of Your IRA Should Include Precious Metals?
You should remember that precious metals are not only for the wealthy. They don't require you to be wealthy to invest in them. There are many ways that you can make money with gold and silver investments, even if you don't have much money.
You might think about buying physical coins such a bullion bar or round. Also, you could buy shares in companies producing precious metals. You may also be interested in an IRA transfer program offered by your retirement provider.
You will still reap the benefits of owning precious metals, regardless of which option you choose. Even though they aren't stocks, they still offer the possibility of long-term growth.
And unlike traditional investments, they tend to increase in value over time. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.
Should you Invest In Gold For Retirement?
This will depend on how much money and whether you were able to invest in gold at the time that you started saving. Consider investing in both.
You can earn potential returns on your investment of gold. Retirees will find it an attractive investment.
While most investments offer fixed rates of return, gold tends to fluctuate. Therefore, its value is subject to change over time.
However, this does not mean that gold should be avoided. This just means you need to account for fluctuations in your overall portfolio.
Another advantage of gold is its tangible nature. Gold can be stored more easily than stocks and bonds. It can also be carried.
You can always access your gold as long as it is kept safe. There are no storage charges for holding physical gold.
Investing in gold can help protect against inflation. It's a great way to hedge against rising prices, as gold prices tend to increase along with other commodities.
Additionally, it will be a benefit to have some of your savings invested into something that won't lose value. Gold usually rises when the stock market falls.
Another advantage to investing in gold is the ability to sell it whenever you wish. Just like stocks, you can liquidate your position whenever you need cash. You don't even need to wait for your retirement.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all your eggs on one basket.
Also, don't buy too much at once. Start by purchasing a few ounces. Continue adding more as necessary.
It's not about getting rich fast. It's not to get rich quickly, but to accumulate enough wealth to no longer need Social Security benefits.
Even though gold is not the best investment, it could be an excellent addition to any retirement plan.
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Legal – WSJ
Guidelines for Gold Roth IRA
The best way to invest for retirement is by starting early. Start saving as soon as possible, usually at age 50. You can continue to save throughout your career. You must contribute enough each year to ensure that you have adequate growth.
Additionally, tax-free opportunities like a traditional 401k or SEP IRA are available. These savings vehicles let you make contributions and not pay taxes until the earnings are withdrawn. These savings vehicles can be a great option for individuals who don't qualify for employer matching funds.
Savings should be done consistently and regularly over time. You'll miss out on any potential tax benefits if you're not contributing the maximum amount allowed.
By: David Sencil
Title: Vast Bank Withdraws From Cryptocurrency Sector, Shuts Down Mobile App
Sourced From: news.bitcoin.com/vast-bank-withdraws-from-cryptocurrency-sector-shuts-down-mobile-app/
Published Date: Wed, 07 Feb 2024 06:30:44 +0000