Crypto Guides, Knowledge & Insights

After SVB's Failure, Regulators Close Signature Bank, A Cryptocurrency-Friendly Bank

The continuing financial catastrophe in the US has claimed its newest victim: Signature Bank. On Sunday, the New York-based financial organization suddenly stopped operating, raising concerns among both clients and authorities. As of December 31, 2022, the bank had 40 locations spread across five states, with total assets of $110.4 billion and savings of $82.6 billion. Approximately 30% of the banks savings came from the cryptocurrency sector, and it offered financial services to businesses in the real estate, legal, and cryptocurrency industries.　　Because the government felt that the closing of Signature Bank posed a structural danger to the nations financial system, it intervened to safeguard the economy. The U.S. Treasury Department, the FDIC, and the Federal Reserve all declared that they would be rendering all of the institutions customers whole in a combined statement. They added that no costs would be carried by the government, similar to Silicon Valley Banks resolve.　　The main reason Silicon Valley Bank and Signature Bank were connected was because of their work in the bitcoin sector. The crypto industry became more worried about the financial viability of their banking counterparties as the SVB crash developed. Due to USDC, a well-known stablecoin administered by Circle, which is a

2023-03-14Deep Dive

Coinbase Challenges US SEC “Regulation By Enforcement” As Crypto Recovers

In support of dismissing the SEC v. Wahi insider trading case, Coinbase has filed an amicus brief, stating that the U.S. Securities and Exchange Commission (SEC) should prioritize the development of appropriate rules and guidance related to securities instead of pursuing misguided securities lawsuits.　　On March 14, Paul Grewal, Coinbases chief legal officer, announced on Twitter that the company had submitted an amicus brief in support of dismissing the lawsuit.　　According to Paul Grewal, Coinbase does not currently list securities. However, the company petitioned the SEC last year to establish rules for digital asset securities, as the existing regulations do not apply to digital assets. Coinbase is currently developing a plan to offer securities in the crypto market.　　Grewal stated, “Although Coinbase does not currently list securities, we are interested in doing so. Last year, we submitted a petition to the SEC, requesting that they establish a regulatory framework for digital asset securities. We provided a list of 50 questions that needed to be addressed before we could list securities, but we have not yet received any response from the SEC.”　　According to Coinbase, the SEC is not focusing on developing appropriate rules or registration options for the crypto industry but rather on misguided

2023-03-14Deep Dive

Bitcoin Price Soars to $22.6K As A Result Of Binance Converting $1 Billion Into BTC, BNB, And ETH

Over the past week, there have been a number of significant events in the financial world, including the cryptocurrency market. Silicon Valley Bank, one of the major banks in the US, experienced a bank run and was forced to shut down by authorities to prevent further panic. The government responded with a rescue plan but also shut down Signature Bank, one of the last remaining crypto-facing financial institutions in the US.　　Meanwhile, Binance CEO Changpeng Zhao announced on Twitter that they plan to convert the remaining $1 billion Industry Recovery Initiative funds from BUSD to native crypto, including BTC, BNB, and ETH. This announcement caused the cryptocurrency market to soar, with Bitcoins price hitting an intraday high of $22,600 on Binance, up 6% on the day. Ethereum also rose around 8% on the day, while BNB soared by roughly 10%.　　The Industry Recovery Initiative was announced by CZ back in November 2022, with the aim of reducing the negative effects of FTX by forming an industry recovery fund to help projects in a liquidity crisis. Now, Binance plans to convert the remaining funds into native crypto, providing more transparency and potentially boosting the value of these cryptocurrencies.　　Overall, these events highlight the volatility

2023-03-13Deep Dive

Nigerians Embrace Virtual Banking as Commercial Banks apps and USSD turn out unstable

By: Damian Okonkwo　　As Nigeria grapples with a shortage of local currency, businesses and individuals are increasingly turning to virtual banks to manage their financial transactions. This shift comes as the countrys commercial bank apps and USSD codes continue to experience technical difficulties.　　The Naira scarcity, which has been a persistent problem in the country, has intensified in recent weeks, causing significant disruptions in the financial sector. Many commercial banks have been unable to meet the high demand for physical cash, leading to long queues and frustrated customers.　　To avoid these inconveniences, Nigerians are now embracing fintech solutions that offer more flexibility and convenience. Virtual banks provide users with access to a range of financial services, including savings accounts, loans, and investment options, without the need for physical branches.　　One such platform that has gained popularity in recent months is Kuda Bank, a digital-only bank that offers zero charges on transactions and easy account opening processes. Another player in the market is Carbon, which provides instant loans and virtual debit cards.　　As these virtual banks continue to gain traction, traditional banks are struggling to keep up. Many of their mobile apps and USSD codes have been crashing, leaving customers unable to access their accounts or

2023-03-13Deep Dive

Another Issuer Of Digital Assets Is Registered With The Bank Of Russia

Five new licensed digital asset issuers have emerged in Russia.　　According to the Russian business news outlet RBC, the Central Bank of Russia (CBR) has registered Distributed Registry Systems and its Masterchain platform in its list of information system operators authorized to issue digital financial assets (DFAs). The CBR has previously registered four other issuers, including Sberbank and Alfa-Bank, the two largest state-owned and private banks in Russia, respectively. Lighthouse, a fintech firm, and Atomyze, a tokenization service, have also been included in the register.　　Distributed Registry Systems, established in April 2021, is an IT company that specializes in developing blockchain-based solutions for various industries, including finance, transport, and logistics. It is supported by several large Russian banks, the Moscow Stock Exchange, and the Association “Of Fintech.” The company plans to initially issue digital financial assets for the rights to monetary claims in the form of either unsecured bonds or structural instruments linked to various assets. The press release also stated that the company would launch other types of DFAs on its platform in the future.　　Recently, Moscow Credit Bank, Russias largest private regional bank, issued the countrys first digital bank guarantee in Chinese yuan using the Master chain platform.　　In January 2021, Russia

2023-03-13Deep Dive

Be AWARE! Online Investment and Romance Frauds!

A 60-year-old woman from Macau was cheated out of nearly 6.75 million Hong Kong dollars. According to local police, the victim met a man who claimed to be a successful investor through a mobile application in December 2022. The man taught the victim to invest in a cryptocurrency, and they quickly developed a romantic relationship. The man proposed to her, and they bought a property together and shared a joint investment account! The victim transferred about 6 million Hong Kong dollars before realizing she might have been cheated and reported the case. How could she have given so much trust (or blind faith) and transferred so much money to a person she had never met？　　In addition, another female victim in her twenties was involved in an online dating fraud case. She met a male Chinese-American online who claimed to send her some valuable gifts. The victim transferred a total of 120,000 yuan to pay for the related package and tax fees, but she did not receive the gifts after the transfer. Below are some related screenshots of the cases of those male scammers who send semi-nude photos to lure innocent women:　　These romance scams have also victimized countless people in Malaysia!

2023-03-13Deep Dive

Be AWARE! Online Investment and Romance Frauds!

2023-03-13Deep Dive

After US Officials End Parent Firm, Bank of England Closes Silicon Valley Bank's UK Office

The Bank of England has closed Silicon Valley Bank (SVB), which was shut down by American authorities on Friday. The company will be subject to bank bankruptcy processes, the central bank stated.　　BOE is forced to close its U.K. branch as a result of the SVB failure.　　The U.S. Federal Deposit Insurance Corporation (FDIC) and the California Department of Financial Protection and Innovation (DFPI) have closed Silicon Valley Bank (SVB), the 16th-largest bank in the country. This is the result of ripple effect that has spread overseas to the companys U.K. subsidiary. SVB UK is no longer handling payments or taking donations as a result of the Bank of Englands (BOE) intervention. According to the BOE statement, the bank will enter a bank bankruptcy process, and qualified savers will receive payouts from the FSCS up to the safe maximum of £85,000 or up to £170,000 for combined accounts.　　Customers tried to extract $42 billion in savings via bank transfers after SVB failed, causing pandemonium. The companys U.K. affiliate has also been impacted by the banks failure, according to Susannah Streeter, director of money and markets at Hargreaves Lansdown, who claimed that it was unavoidable that the SVB UK branch would fail. Despite claims

2023-03-13Deep Dive

After Silicon Valley Bank Failed, Fears Of A Financial Disaster Arose

The largest financial institution failure since the financial crisis more than a decade ago occurred on Friday as Silicon Valley Bank (SVB) had its assets seized by US regulators. SVB was the 16th largest bank in the country, catering to depositors such as technology workers and venture capital-backed companies. This week, many of its customers withdrew their money due to anxiety over the banks situation, resulting in the banks inability to manage the large withdrawals. Despite attempts to raise new funds, the bank ultimately failed. The Federal Deposit Insurance Corporation (FDIC) took control of the bank and its management, as per their responsibility to guarantee deposits. Although it may not be well-known to the public, SVB specialized in financing start-ups and was one of the largest banks in the US, with $209 billion in assets and about $175.4 billion in deposits as of the end of 2022.Tech Employees Are Becoming More Anxious　　Silicon Valley Banks collapse marks the second-largest retail bank failure in the US since 2008s Washington Mutual collapse. On Friday, US Treasury Secretary Janet Yellen convened financial regulators to discuss the situation, assuring them that she trusted their ability to take appropriate action and emphasizing the banking sectors resilience.

2023-03-13Deep Dive

Binance CEO Speculates Coordinated Efforts To Destabilize Crypto; Is Bitcoin Under Attack?

The crypto market experienced a tumultuous year in 2022, and it seems that the challenges are likely to persist in the current year as well. Due to regulatory hurdles and the collapse of prominent companies, the crypto industry is facing a difficult situation that appears to be a deliberate attempt to undermine it.　　Binance CEO Raises Concern On Crypto　　　　Binance CEO, Changpeng “CZ” Zhao, shared a similar view. In a recent tweet, he suggested that the current situation in the cryptocurrency space may be a coordinated effort to shut down banks that are supportive of crypto, which could have negative consequences for the industry in the future.　　Despite the impact of attempts to hinder the cryptocurrency industry, traditional financial institutions are currently struggling while blockchain technology continues to operate due to its decentralized nature. This decentralized approach prevents any central authority from taking control. As an example, Bitcoin has maintained its $20K value despite facing regulatory obstacles, negative press coverage, and media scrutiny.　　Recently, several influential authorities in the United States, such as the Federal Reserve, the OCC, FDIC, SEC, NYAG, NYDFS, DOJ, and members of Congress, have been making efforts to destabilize the growing cryptocurrency industry, which has been challenging the traditional market

2023-03-13Deep Dive

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