CRYPTOCURRENCY
US Bank Failures Shock Regulators
The New York Department of Financial Services and the US Federal Reserve Board have published their internal reviews on the handling of Signature Bank and Silicon Valley Bank's failures. The string of bank failures, including Silvergate Bank's voluntary liquidation, has prompted regulators to re-evaluate their supervision.
US Crypto Crackdown Hurts USD Coin
Circle CEO Jeremy Allaire has blamed the declining market capitalization of USD Coin (USDC) on the cryptocurrency crackdown by US regulators. Allaire cited global concern about the US banking system and regulatory environment as major factors.
Paxful Unfreezes Majority of Accounts
Paxful, a peer-to-peer cryptocurrency marketplace, has unfrozen 88% of previously frozen user accounts after suspending operations. The remaining $4.4 million in frozen funds is in the hands of US financial regulators.
Binance CEO Emphasizes Importance of Understanding Crypto for Proper Regulation
During a fireside chat at the Hong Kong Web3 Festival, Binance CEO Changpeng Zhao (CZ) discussed the importance of regulators having a deep understanding of the crypto industry to properly regulate it. He emphasized the need for regulatory clarity and engagement with regulators. CZ also suggested that government efforts to restrict traditional financial markets may push more people towards crypto, ultimately leading to mass adoption.
Singapore Regulators and Banks Develop Crypto Customer Screening Standards
Singapore's monetary authority and police forces are collaborating with traditional banks to optimize their procedures for opening accounts for digital asset service providers. After six months, results and conclusions for risk management and due diligence will be published. The guidelines will cover stablecoins, NFTs, and transferable gaming or streaming credits, with banks reserving the right to make decisions based on their own risk assessment.
US Crypto Crackdown Could Stifle Innovation and Weaken Dollar
The recent Wells notice issued by the SEC to Coinbase, along with other legal threats against crypto firms, has raised concerns among industry experts that the US crackdown on cryptocurrencies could stifle innovation and weaken the dollar. Some believe that the regulatory environment in the US is driving jobs, investment, and innovation offshore, to countries like Singapore, Hong Kong, and potentially Australia.
FDIC Requires Potential Buyers of Failed U.S. Banks to Give Up Crypto Services
The FDIC has asked banks interested in acquiring failed U.S. lenders, Silicon Valley Bank and Signature Bank, to submit bids by March 17. The authority will only accept bids from banks with an existing bank charter, prioritizing traditional lenders over private equity firms. The FDIC has also required any buyer of Signature to agree to give up all cryptocurrency business at the bank. This news comes amid concerns expressed by U.S. Representative Tom Emmer that the federal government is “weaponizing” issues around the banking industry to go after crypto.
Yellen Works with Regulators to Address Silicon Valley Bank Collapse
United States Treasury Secretary Janet Yellen is working with regulators to address the collapse of Silicon Valley Bank (SVB), one of the top 20 largest banks in the US. Yellen has stated that they are focused on protecting depositors, particularly small businesses that employ people across the country, and that they are considering a range of available options, including acquisitions from foreign banks.
FTX to Have Its European Operating License Suspended
Following its turmoil, the FTX’s European license is now said to be soon suspended by Cyprus regulators, according to a report.
FTX.US, Founder Sam Bankman-Fried Are Under Probe by Texas Regulators
Texas Regulators are investigating FTX.US over its high-yield, interest-bearing accounts.