Wyre Inc has been previously known as leading a technology company for fiat onramps and off-ramps, as well as a wide range of additional payment services for businesses and individuals. Founded in 2013, the company had grown to become seen as a leader in both the crypto and fintech spheres, with offices in San Francisco, New York, and London, and a $1.5 billion valuation at its peak.
Now just less than a year later from that valuation, they, like several other large crypto companies as of late, may have to close their doors for good in only a few days.
Wyre had been seen as a safe bet for both customers and investors alike because of its focus on compliance and collaboration with regulators. The company obtained regulatory approvals in multiple jurisdictions around the world and consistently maintained transparency with operations and compliance with local laws.
Much of the current market instability has been exacerbated by a steep market decline throughout 2022. The crash of the TerraUSD stablecoin and the third-largest crypto exchange FTX going bankrupt are ultimately pointed to as the leading causes of additional market volatility.
The closing of Wyre is likely to cause further disruption throughout the market. Crypto banking firm, Juno, has advised its customers to self-custody their digital assets or sell them for cash as it works to migrate client funds to a new custodian, according to a tweet Wednesday morning.
"We are switching custodians because we expect potential issues with Wyre given they might be scaling back or winding down," Juno CEO and co-founder Varun Deshpande told CoinDesk.
In order to bring consistent growth and stability to the space, regulators and future investors are going to look to companies that have implemented effective compliance programs to mitigate risk and avoid more of the turbulence we are experiencing now. By using specialized software like Clain, businesses can demonstrate their commitment to compliance and protect themselves from being used as a conduit for illicit activity. For regulators and law enforcement agencies, companies that partner with Clain will serve as key partners in the growth of the crypto ecosystem.
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