1. PixelPlaygroundHome
  2. Web3 News

SilverGate Bank Suspends the SEN Payment Network Service: A Risk-Based Decision

• Web3 News • 105 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 Bank Suspends the SEN Payment Network Service: A Risk-Based 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:


SilverGate Capital Corp, the parent company of the cryptocurrency bank SilverGate Bank, has recently announced the suspension of the SilverGate Exchange Network (SEN) payment network service. This move comes as a surprise to many cryptocurrency companies who rely on the SEN service to send legal currencies to each other in real-time.

The interruption of the SEN service is a risk-based decision, and it has taken effect immediately. However, all other deposit-related services are still in operation. This sudden move by SilverGate Capital Corp has raised questions about the future of cryptocurrency banks and the safety of their payment network services.

Cryptocurrency companies are already prone to fluctuations, but with the suspension of the SEN service, they may be forced to find other payment methods or risk losing their position in the market. The move by SilverGate Capital Corp suggests that there might be potential dangers associated with the use of SEN services that they have identified, requiring an immediate risk-reduction response.

It is unclear why SilverGate Capital Corp has taken this action, but it could be speculated that the decision was a reaction to concerns over regulatory compliance or the ongoing regulatory crackdown over the use of cryptocurrencies. Such measures are aimed at protecting investors and ensuring that the market operates within the law, but it ultimately affects the businesses that rely on cryptocurrency exchanges as their primary source of funding.

The decision to suspend SEN services could also underline the need for banks dealing in cryptocurrencies to be more careful about managing their risks. As the cryptocurrency industry evolves, it is essential for these institutions to keep up with the latest regulations and compliance requirements to avoid the unexpected disruption of their services.

In conclusion, the suspension of SEN services by SilverGate Capital Corp has brought to light the vulnerability of the cryptocurrency industry and its inter-reliance on the banking sector infrastructure. However, this decision will have a significant impact on the many businesses that rely on SEN to trade in legal currencies. This move underlines the need for cryptocurrency companies to acknowledge and manage their risks and threats.

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/4937/

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

Recommended articles