Silvergate Bank to be liquidated, more firms flee
A week after failing to file its annual report, Silvergate Capital Corporation says it will wind down its services and liquidate subsidiary Silvergate Bank.
The move spells trouble for the crypto space, as Silvergate was – until today – one of the leading crypto-friendly banks in operation.
US senators are already using Silvergate’s failure as an example of why increased regulations are urgently needed, with Senate Banking Committee chair Sherrod Brown signalling that “strong safeguards” are imminent, to protect the financial system from “the risks of crypto.”
As of press time, several companies – such as Marathon Digital Holdings – have severed ties with Silvergate ahead of liquidation.
READ NOW: Silvergate short seller says he’s betting against Signature: ‘Binance is next’
JPMorgan reportedly cut ties with Gemini
In a story that could go either way, JP Morgan was reported early Wednesday to be cutting ties with crypto exchange Gemini.
Gemini, however, denies that the relationship is on the rocks.
Gemini, headed by co-founders Cameron and Tyler Winklevoss of Facebook fame, has faced a string of setbacks since a 2022 wave of crypto collapses shook the industry.
Most recently, the Securities and Exchange Commission sued Gemini for its Earn product, which the agency claims is an unregistered security.
JP Morgan told DL News that the bank does not comment on client relationships.
Despite reporting to the contrary, Gemini's banking relationship remains intact with JPMorgan.
— Gemini (@Gemini) March 8, 2023
UK regulator says new law not enough for crypto investors
The chief executive of the UK’s Financial Conduct Authority, Nikhil Rathi, said his agency doesn’t have the power to protect crypto investors from losses, stating the upcoming Financial Services and Markets Bill will not include loss protection.
Rathi told the Treasury Select Committee that “under no circumstances whatsoever, should people expect compensation” as a result of the incoming legislation, despite the act giving the FCA considerably more tools to ensure crypto companies operate in compliance.
3AC founders pull off $25m raise for OPNX; Rook surges
Rook – the liquidity protocol associated with controversial Three Arrows Capital founders Su Zhu and Kyle Davies – is surging amid rumours that the two have completed a $25 million raise for their bankruptcy-tokenisation project, OPNX.
The hype comes following a tweet by blockchain researcher Ignas, who says they spoke directly with Davies in regards to the raise.
Three Arrows Capital made headlines last year after going bankrupt due to a series of risky bets linked to Terra/Luna, which itself crashed a few months before.
NOW READ: Meet the professor ‘obsessed’ with tracking crypto fugitive Do Kwon across the blockchain
1/12 Kyle Davies reached out to me after this tweet.
— Ignas | DeFi Research (@DefiIgnas) March 7, 2023
The fundraising deal is done.
But they won't disclose who are the investors - as most exchanges don't.
He also explained how the exchange, collateral system & tokenomics works: 🧵 https://t.co/A43gKBMjz0
India enforces anti-money laundering push
India’s finance ministry imposed new anti-money laundering provisions on all crypto companies on Tuesday.
The finance ministry emphasised enforcement of know-your-customer practices, previously suggested rather than obligated by law, in an effort to prevent money laundering.
India has been particularly tough on crypto in recent years, imposing a 30% tax on crypto profits and taking a vocal lead on setting an international regulatory framework at the recent G20 summit.
CFTC head claims Ether and stablecoins are commodities, not securities
US Commodity Futures Trading Commission chair Rostin Benham is taking a contrary stance to the SEC’s, claiming that Ether and stablecoins are actually commodities and therefore under his agency’s purview.
SEC head Gary Gensler has repeatedly claimed that most, if not all, altcoins should be classified as securities, which would place them under the scope of his agency.
Recent litigation by the SEC against stablecoin issuer Paxos hinges on the market watchdog’s view that stablecoins are securities, which may be a hint that Benham’s stance creates friction between the two agencies in the future.
More web3 news found around the web...
Crypto lender Celsius should continue exclusive right to pursue Novawulf deal, judge says – CoinDesk
Pro-Russian neo-Nazis’ Telegram campaigns raise $5m in crypto – but it’s ‘significantly harder – DL News
