Crypto Payment Platform Shuts Down Due to Issues In Banking System

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The crypto space has seen several shocking incidents recently. There have been enforcement actions, crypto hacks, and the sudden closure of 3 crypto-friendly banks; Silvergate, Silicon Valley, and Signature. 

A new incident has once again shocked the industry as a crypto payment processor SpankPay, announced that it is shutting down its services. The parent firm SpankChain cites a hostile banking environment for the service closure.

Crypto Payment processor Losses Partner And Can’t Find A Replacement

SpankPay posted the decision to shut down the platform on its official Twitter page. The crypto payment processor noted that the move was a targeted shutdown by Wyre, which suddenly closed their account.

Wyre withdrew from its agreement with the crypto payment processor in February this year. In its termination notice, Wyre identified SpankPay in its ‘Declined Line of Business Policy.’ Due to Wyre’s handling of its agreement, SpankPay called it a targeted approach.

Further, SpankPay mentioned that it has been trying to get other alternative service providers to support its business. However, the move seems abortive 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 processor lamented how challenging it has been to operate in a hostile banking environment. SpankPay believes surviving with a small team and its niche market is difficult due to the growing rejections, attacks, and other unfavorable 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 haven for its community. So, it mentioned that they’re working on getting all their customers’ funds.

Also, it urged customers to opt for digital wallets and explore other possibilities for managing personal finance. The payment service provider mentioned their plans to develop more products suitable for the adult industry. 

More Details on SpankPay 

The parent firm, SpankChain, is an Ethereum-based adult entertainment entity. The company is committed to assisting adult content creators as it eliminates the influence of third parties like traditional banks. It saves its users from spending huge fees and from the discrimination banks mete out to 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 within the crypto industry due to an unfavorable operational environment. Friendsies, an NFT collection, shut down in February after posting about pausing operations. The project team cited the volatility and challenges in the crypto market as reasons for their closure.

Last year, several crypto platforms crashed, leading to huge losses ranging in billions of dollars. According to a Reuters report, some prominent crypto companies that failed in 2022 include FTX, Celsius Network, BlockFi, and Three Arrows Capital.

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