The crypto space has seen some shocking events recently. There are enforcement actions, crypto hacks, and the sudden closure of 3 crypto-friendly banks; silvergate, Silicon Valleyand Signs.
A new phenomenon has once again shocked the industry as a crypto payment processor SpankPay, announced that it shuts down its services. SpankChain’s parent company cited an unfriendly banking environment for service closures.
Crypto Payment Processor Loses Partner And Can’t Find Replacement
SpankPay sent the decision to turn off the platform on the official Twitter page. The crypto payment processor noted that the move was the target of a shutdown by Wyre, which suddenly closed its account.
Wyre withdrew from an agreement with the crypto payment processor in February this year. In its termination notice, Wyre identified SpankPay in its ‘Reject Line of Business Policy.’ Because Wyre handles the agreement, SpankPay is said to be a targeted approach.
Furthermore, SpankPay stated that it has tried to get other alternative service providers to support its business. However, the move seems abortive as it faces rejection from other companies as it is in a mature industry. The crypto payment processor indicated that Checkout.com was one of the companies that refused.
SpankPay Blames Unfriendly Operating Environment For Closure
Payment processors lament how difficult it is to operate in a hostile banking environment. SpankPay believes that surviving with a small team and niche market is difficult due to denials, attacks, and other unfavorable situations.
But it assures users the security of their money. The service notes that part of the vision for creating the platform is to provide shelter to the community. So, it is stated that they are working with the funds of all customers.
In addition, he encourages customers to choose a digital wallet and explore other possibilities for managing their personal finances. The payment service provider has announced plans to develop products that are more suitable for the mature industry.
More details about SpankPay
The parent company, SpankChain, is an adult entertainment entity based on Ethereum. The company is committed to helping create mature content by removing the influence of third parties like traditional banks. This saves users from spending large fees and from discriminatory banks to mature industries.
SpankChain provides 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.
Apart from SpankPay, several digital asset companies have died in the crypto industry due to poor operational environment. Friendsies, NFT collection, kill in February after posting about the operation pause. The project team cited volatility and challenges in the crypto market as the reason for the closure.
Last year, several crypto platforms collapsed, causing huge losses of several billion dollars. According to Reuters reportsome of the famous crypto companies that failed in 2022 include FTX, Celsius Network, BlockFi, and Three Arrows Capital.
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