The last year showed to be another rough year for the crypto market. From a enduring market downturn and exploits in decentralized finance (DeFi) to the FTX scandal, no location was left unscathed.For some, the happenings in the space proved unsustainable for business. The Metropolitan Bank Holding Corp, the holding business for New York-based Metropolitan Commercial Bank(MCB ), announced it is totally leaving its crypto-assets vertical.In its declaration, the corporation said its choice”shows current advancements in the crypto-asset market, “in addition to modifications in the regulative landscape in regard to banks ‘participation in crypto-asset-related businesses.According to MCB, the procedure has actually been continuous given that 2017, and it expects little

financial impact. It currently has four active institutional crypto-asset-related customers, which represent around 1.5 %of total incomes and 6%of total deposits.This advancement comes together with the ongoing procedures from the FTX case that have actually kept the spotlight on the crypto industry.Experts anticipate increased scrutiny from regulators in the United States towards the space in the upcoming year. Especially as the Securities and Exchange Commission, Financial Accounting Standards Board and Internal Revenue Service are seeking to up crypto regulations and oversight. Related: What is institutional DeFi, and how can banks benefit?On Jan. 3, the Federal Reserve, Federal Deposit Insurance Corporation(FDIC)and the Office of the Comptroller of the Currency(OCC

 )launched a joint declaration relating to crypto properties in light of the 2022 turmoil. It also highlighted their commitment to grounded banking practices. In addition to the oversight on FTX, Binance is likewise being penetrated for cash laundering in

U.S. courts. This hasbrought further examinations as to the relationships of hedge funds with the

crypto exchange.Despite the industry scrutiny, some market experts have high hopes for DeFi in this upcoming year.