Crypto payment platform shuts down due to problems in banking system
The crypto space has seen several shocking events recently. There have been enforcement actions, crypto hacks, and the sudden shutdown of 3 crypto-friendly banks; silvergate, Silicon Valleyand signature.
A recent event has once again shocked the industry as a crypto payment processor SpankPay announced that it is shutting down its services. Parent company SpankChain cites a hostile banking environment for the service shutdown.
Crypto payment processor loses partner and can’t find a replacement
SpankPay posted the decision to close the platform on its official Twitter page. The crypto payment processor noted that the move was a targeted shutdown of Wyre, which suddenly closed their account.
Wyre pulled out of its deal with the crypto payment processor in February this year. In the termination notice, Wyre identified SpankPay in its ‘Rejected Business Policy.’ Because of Wyre’s handling of the deal, SpankPay called it a targeted approach.
Furthermore, SpankPay mentioned that they have been trying to get other alternative service providers to support their business. However, the move seems unsuccessful as it faces rejection from other firms for being in the adult industry. The crypto payment processor pointed out that Checkout.com was one of the companies that rejected them.
SpankPay blames unfriendly operating environment for closure
The payment intermediary lamented how challenging it has been to operate in a hostile banking environment. SpankPay believes that surviving with a small team and its niche market is difficult due to the increasing rejections, attacks and other adverse conditions.
But it assured users of the safety of their money. The service noted that part of the vision for establishing the platform was to provide a sanctuary for the community. So it mentioned that they are working on getting all the customers’ funds.
It also encouraged customers to opt for digital wallets and explore other options for managing personal finances. The payment service provider mentioned its plans to develop more products suitable for the adult industry.
More details about SpankPay
The parent company, SpankChain, is an Ethereum-based adult entertainment entity. The company is committed to helping creators of adult content as it eliminates the influence of third parties such as traditional banks. It saves users from spending large fees and from the discrimination banks face in the adult industry.
SpankChain provided the adult industry with a friendly payment service provider by launching SpankPay in 2019. SpankPay accepts digital assets and is the most accessible platform for adult entertainers and merchants to make payments and hold digital assets.
Besides SpankPay, several digital asset firms have shut down in the crypto industry due to an unfavorable operating environment. Friendsies, a NFT collection, turn off in February after posting about a break in operations. The project team cited the volatility and challenges of the crypto market as reasons for their closure.
Last year, several crypto platforms crashed, leading to huge losses of billions of dollars. According to a Reuters reportsome prominent crypto companies that failed in 2022 include FTX, Celsius Network, BlockFi and Three Arrows Capital.
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