• Coinbase has reportedly explored the possibility of setting up a cryptocurrency trading platform in a jurisdiction outside US regulatory reach.
• This move could expand Coinbase’s offerings to a global client base beyond its existing marketplace, and diversify its risks in case of any US regulatory challenges.
• Establishing a crypto-trading platform outside of the US could provide Coinbase access to new markets and increased liquidity for institutional clients.
Coinbase Explores Establishing Cryptocurrency Trading Platform Outside U.S.
According to a recent report by Bloomberg, Coinbase has explored the possibility of setting up a cryptocurrency trading platform in a jurisdiction outside United States agencies’ regulatory reach.
The Impact Of Increasing Regulatory Scrutiny
With increasing regulatory scrutiny and crypto-friendly banks shutting down operations less than a month apart, the climate for crypto platforms in the US has been worsening. In response to this crackdown against the industry, the largest crypto exchange in the US has taken steps to mitigate the impact on its operations.
Benefits Of Setting Up Exchange Outside The U.S.
Establishing a crypto-trading platform in a jurisdiction outside of the US regulatory sphere could offer Coinbase access to new markets. This move could expand Coinbase’s reach and allow them to tap into previously inaccessible markets. Additionally, this move could increase the exchange’s liquidity for its institutional clients, providing them with more trading options as well as diversifying risks in case of any future US regulatory challenges.
Potential Locations For Crypto Trading Platform
Although establishing a platform overseas could provide Coinbase with greater regulatory flexibility, the exchange will still need to find an appropriate location that is conducive for launching such services legally and securely while also offering attractive tax benefits. Some potential locations include Japan or Singapore – both countries have made significant strides towards creating favorable conditions for businesses operating within their jurisdictions related to cryptocurrencies and blockchain technology innovation projects.
Establishing an offshore crypto-trading platform may be one way for Coinbase to mitigate some of its risk from increasing regulation within the United States while also expanding its offerings beyond its current marketplace by tapping into new markets globally; however, it is important that they choose an appropriate location that is suitable for launching such services legally and securely while also offering attractive tax benefits if they wish to take advantage of this opportunity successfully
• Silicon Valley Bank (SVB) is facing a financial crisis due to the tightening of monetary policies and the Federal Reserve’s hawkish macroeconomic view.
• SVB launched a $1.75 billion securities sale in an attempt to raise capital and recover losses, but this caused further concern among investors.
• Californian regulators have closed down SVB, leaving employees uncertain about their future and investors worried that the bank cannot cover its losses.
Silicon Valley Bank Crisis
Silicon Valley Bank (SVB) has followed the financial freefall amid Federal Reserve (Fed) Chairman Jerome Powell’s hawkish macroeconomic view and tightening policies to control inflation rates. With over 40 years in the market, Silicon Valley Bank is facing a significant downturn in its shares, falling more than 60% since Thursday.
On Wednesday, the go-to bank for venture capitalists and tech startups launched a massive $1.75 billion securities sale to raise capital and try to recoup its earlier losses, raising concerns among investors. According to several reports, the financial institution was closed by Californian regulators.
What Is Happening?
Before today’s events, the Silicon Valley Financial Group was considering options for exiting the crisis, including a sale after the heavy lender sent shockwaves through global markets and battered its shares on the Nasdaq stock market. According to Reuters report, Silicon Valley Bank needed proceeds from this security sale to plug a $1.8 billion hole caused by selling a $21 billion loss-making bond portfolio consisting primarily of U.S Treasuries. Investors were concerned if capital raised would be enough cover losses as technology sector that bank serves was affected by inflation control policies resulting in decline of fortunes of tech startups – leading up to current situation with SVB being shut down by California regulator till further notice.
Silicon Valley Bank CEO Gregory Becker has been calling customers to assure them their capital is “safe” in the bank which ultimately proved inaccurate due uncertainty around next steps after closure of bank by regulators .
This financial crisis with Silicon Valley Bank is one of largest failures in history as it’s core customer base – venture capitalists & tech startups are struggling due tightening of monetary policies & Fed’s macroeconomic view which resulted in closure of SVB by California regulators till further notice with uncertain future ahead & concerns around whether capital raised will be sufficient enough cover all losses incurred till now..
• Silvergate shares experienced a significant decline of nearly 60% on Thursday due to business partners and investors leaving abruptly.
• The company was unable to submit its annual report on time to the US Securities and Exchange Commission (SEC).
• Several other crypto firms, including Galaxy Digital, Coinbase, and Paxos Trust, have decided to stop accepting or initiating payments through Silvergate.
Silvergate Shares Plummet after Financial Instability
Silvergate shares experienced a significant decline of nearly 60% on Thursday due to both business partners and investors leaving abruptly to avoid financial instability. The drop was the largest ever seen for Silvergate. On Wednesday, Silvergate announced that it was unable to submit its annual report on time to the US Securities and Exchange Commission (SEC).
Analysts Downgrade Ratings
As a result, three analysts downgraded their ratings of the stock, with one removing their price target altogether because of the significant level of uncertainty surrounding the company. JPMorgan downgraded Silvergate from “neutral” to “underweight” after the company announced it was assessing its ability to continue operating as a going concern. Canaccord Genuity Group downgraded the bank to “hold,” while Compass Point Research & Trading LLC downgraded it to “neutral”.
FTX Contagion Rattles Silvergate Shares
The crypto market has been impacted by the aftermath of the FTX collapse, and Silvergate has been directly affected since the bank had approximately $1 billion in deposits from the now-defunct exchange when it collapsed. Additionally, several other crypto firms, including Galaxy Digital, Coinbase, and Paxos Trust, have decided to stop accepting or initiating payments through Silvergate. This exodus poses a major risk to the bank’s primary source of deposits and its role as a platform for crypto participants to transfer money between one another.
Coinbase Ceases Payments with SilverGate
Coinbase released a statement shared on Twitter saying “In light of recent developments and out of an abundance of caution Coinbase is no longer accepting or initiating payments To or from SilverGate” At Coinbase all client funds continue to be safe accessible & available.
Regulatory Issues Stirring The Pot
More than $11 billion in assets are frozen at FTX which could prompt regulators into taking further action against other exchanges who may be using similar tactics as those used by FTX before they collapsed .This could create more issues for silver gate if they are found not compliant with regulations set forth by government agencies such as FINRA or SEC .
• Forsage, a popular DeFi platform, came under the radar of a federal grand jury for running a Ponzi scheme worth over $340 million.
• The Department of Justice (DOJ) charged the founders with fraud, conspiracy, and money laundering.
• The defendants falsely presented Forsage as a legal environment where investors can gain huge profits with low risk.
Forsage Accused Of Running Ponzi Scheme
The Department of Justice (DOJ) recently accused the founders of Forsage, a popular decentralized finance (DeFi) platform, of running an illegal Ponzi scheme worth over $340 million. A federal grand jury in the District of Oregon has been investigating Forsage for several months and revealed this information in a recent post.
Charges Against Founders
The DOJ charged Olena Oblamska, Vladimir Okhotnikov, Sergey Maslakov, and Mikhail Sergeev with multiple counts of fraud, conspiracy, and money laundering. It is alleged that the platform was a “pyramid scheme” relying on recruiting new members to pay returns to early investors.
False Promises Used To Lure Investors
The defendants used false and misleading statements to lure investors into the scheme by presenting it as a legal environment where they can gain huge profits with low risk. They also used several social media platforms and its website to promote Forsage promising investors smooth operations.
Secret Codes Used To Collect Funds Illegally
To carry out their fraudulent activities undetected, the defendants developed secret codes in one of the platform’s accounts on Ethereum blockchain which fraudulently collected funds from the network and transferred them into digital currency accounts under their own control. This move was contrary to their initial agreement with investors regarding handling funds received from investing in Forsage network.
Most Investors Received Less Than Invested
Blockchain analytics claims more than 80% of Forsage investors received less Ether than they had invested while over 50% got nothing in return after their investments.
• South Korean financial authorities have announced plans to examine cryptocurrency staking services in the region.
• The move follows the SEC’s recent crackdown on U.S. exchange Kraken for offering unregistered securities.
• Paxos, issuer of Binance-branded stablecoin BUSD, has been issued a Wells Notice by the SEC for selling and listing unregistered security.
Regulatory Scrutiny Intensifying
The crypto industry has expressed concerns as regulatory scrutiny continues to intensify. In today’s news, South Korean financial authorities have disclosed plans to examine cryptocurrency staking services in the region.
SEC Crackdown On Kraken
This regulation implementation comes shortly after the crypto exchange Kraken’s case with the U.S. Securities Exchange Commission (SEC), whereby the U.S. regulator cracked down on the company’s staking program accusing the exchange of violating securities law.
South Korea Follows Suit With SEC Crypto Staking Regulations
Unlike the SEC, which targeted a specific cryptocurrency exchange that issued the staking services, the Korean regulator is more focused on examining national staking services without giving further details on timeline and methods yet. This move is said to affect some legislative decisions regarding digital assets in South Korea.
SEC Crackdown Over The Past Week
Over the past week, the SEC has been rampaging against big digital asset industry players like Paxos — BUSD issuer— issuing them Wells Notices for selling and listing unregistered security such as BUSD and other assets fit with this concept resulting in halting distribution of BUSD temporarily this Monday morning .
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• The Securities and Exchange Commission (SEC) is in charge of regulating the US securities markets, including cryptocurrency.
• The SEC has released its yearly assessment goals regarding how it will keep watch of developing risks, including the management of crypto assets.
• Brokers and advisors dealing with cryptocurrency must adhere to standards of care for investors and routinely review their risk management systems.
SEC Regulates US Crypto Markets
The Securities and Exchange Commission (SEC) is in charge of regulating the United States’ securities markets, including cryptocurrencies. In order to protect investors from potential risks, the SEC has released its annual assessment goals outlining how it will monitor developments in the industry.
Crypto Classified as Securities
The regulator has taken a cautious approach to regulation by classifying the majority of cryptocurrencies as securities and subjecting them to federal rules. Brokers and advisers dealing with cryptocurrency must ensure they are adhering to ‘standards of care’ for investors, as well as regularly updating their risk management systems.
Investment Advisers Act
The Investment Advisers Act of 1940 stipulates that investment counseling entities must be qualified to offer custody services to clients and conform with custodial precautions. The SEC’s examinations unit will evaluate brokers-dealers and investment advisers that utilise innovative financial technology such as cryptocurrency in order to ensure they are meeting these requirements.
Chairman Gary Gensler
SEC Chairman Gary Gensler has long held that most cryptocurrencies should be classified as securities, making them subject to examination and regulation by the agency. This commitment shows that the regulator takes investor protection seriously when it comes to digital assets such as cryptocurrencies.
Overall, this article shows that the SEC is taking an active role in monitoring cryptocurrency markets for potential risks in order to safeguard investors from harm. By classifying most coins as securities, brokers and advisors involved with crypto must adhere strictly to regulations outlined by the Investment Advisers Act in order secure customer funds properly.
• The U.S. Justice Department has accused FTX founder Sam Bankman-Fried of attempting to stall bankruptcy proceedings by appealing to foreign regulators.
• FTX denies these allegations, but experts are calling for increased regulation and accountability in the crypto industry.
• The accusations against SBF have caused outrage in the financial community, leading some to call for him to be held accountable and for the exchange to be shut down.
Accusations Against FTX Founder
The U.S. Justice Department has accused FTX founder Sam Bankman-Fried (SBF) of attempting to stall bankruptcy proceedings through leniency from foreign regulators, according to a Wall Street Journal report. The idea was to transfer crypto assets from his exchange platform to international regulators.
FTX Denies Allegations
FTX has denied these allegations, stating that the company is committed to following all applicable laws and regulations in every jurisdiction in which it operates. The company has also stressed that it has a strong track record of compliance and has never been found to have violated any laws or regulations.
Consequences For Crypto Industry
Despite FTX’s denial, the accusations against SBF and the company continue to attract widespread attention and criticism. Some industry experts predict this could have significant consequences for the cryptocurrency industry, including increased regulation and inspection.
Outrage In Financial Community
The accusations against SBF have caused outrage in the financial community. Many call for stricter regulations and increased accountability for cryptocurrency exchanges and their founders. Some have even called for SBF to be held accountable for his actions and for the FTX exchange to be closed down.
Need For Increased Security
Despite the success of the crypto space, it has been subject to criticism, particularly around the recent accusations of the FTX founder, SBF As the sector continues to grow, many call for more regulations on projects, exchanges, platforms and other related entities in order ensure higher security within this space
• Amazon is reportedly launching an NFT initiative in Spring 2023.
• The initiative will focus on different sectors, including gaming and rewards for Prime subscribers.
• The platform will be developed and could run on Amazon proper instead of AWS.
Big tech giant Amazon is taking a major step into the world of cryptocurrency by launching a non-fungible token (NFT) initiative sometime in Spring 2023. According to sources from crypto news outlet Blockworks, the company has partnered with over ten crypto projects to support the initiative, which could potentially revive the sector following a decline in the NFT market from its 2021 high.
The initiative will focus on various sectors, including gaming, and is anticipated to reward Prime subscribers with unique items in the form of NFTs. Amazon already offers its Prime service subscribers access to a gaming platform, through which members can access the platform’s catalog and receive monthly rewards to claim AAA games. The potential addition of an NFT initiative could further bolster the service by offering more rewards and attracting more users.
The report also claims that the NFT platform is currently under development and could run on Amazon proper instead of Amazon Web Services (AWS). This could be a major move for the e-commerce giant, who could reveal further information about the initiative in April 2023.
Amazon is far from the first big tech company to enter the crypto space. Microsoft, Facebook, and Google have all taken steps to embrace cryptocurrency technology and further its development. According to the Blockworks report, Amazon’s move could further solidify the company’s position in the crypto industry and make it a major player in the space.
It remains to be seen how the NFT initiative will progress and what impact it will have on the current crypto landscape. However, Amazon’s move could potentially reignite the sector and bring more attention to digital assets and blockchain technology.
• The Singapore high court has extended the creditor protection period for Vauld, a crypto lending platform, till February 28, 2023.
• Vauld filed for protection from Singaporean creditors due to the bearish market in 2022.
• Two digital asset fund managers have expressed interest in taking over the remaining Vauld assets.
The crypto space has endured a tumultuous period, with the market having been engulfed in a sea of chaos and volatility as a result of the bearish trend that has been prevalent since 2022. One of the companies that have felt the full brunt of this situation is Vauld, a crypto lending platform. Vauld has been facing immense difficulties in its operations, leading to the suspension of withdrawals on the platform. In a bid to protect itself from its Singaporean creditors, the company filed for creditor protection.
The Singapore high court has now granted Vauld an extension period of over a month to devise a revival plan on its present negotiations. This extension period will last till February 28, 2023. This will enable the company to complete all the necessary processes in its negotiations with the two digital asset fund managers who have expressed interest in taking over the remaining Vauld assets.
These two digital asset fund managers have indicated to Vauld that they are in the advanced stages of negotiations and need more time to conclude the process. This extension period is seen as a much-needed lifeline for the company and could help it return to profitability. It is also hoped that this period of protection will help Vauld to revive its operations, and ensure that the company does not succumb to bankruptcy.
The crypto space has been hit hard by the bearish market trend, with many companies being forced to file for bankruptcy. Vauld is one of the companies that has been affected by this, but it appears that the company may yet have a chance at making a comeback. With the extension period granted by the Singapore high court, Vauld will now have the time to work on its revival plan and negotiations with the two digital asset fund managers. This could prove to be the lifeline that the company needs to get back on track and return to profitability.
• Coinbase is letting go of 1,000 employees as part of a critical strategy to survive the crypto winter.
• The crypto exchange was founded in 2012 and has survived multiple bear markets before.
• The most significant factor influencing this decision was the collapse of the crypto exchange FTX.
Coinbase, the leading crypto exchange, is cutting its staff by 1,000 employees as part of an effort to survive the prolonged crypto winter. The company’s CEO, Brian Armstrong, announced the decision in an effort to reduce operating expenses by 25%.
The company was founded in 2012 and has been able to survive several bear markets in the past. This time, however, the situation is different. The crypto winter coincides with a macroeconomic downturn, which has caused a massive decrease in the demand for cryptocurrencies.
The most significant factor influencing the decision to lay off employees was the collapse of the crypto exchange FTX. The company filed for bankruptcy in late 2022, and the ripple effect of that collapse is still being felt across the crypto industry. Coinbase is worried that other companies will be affected by the collapse in the coming months and is taking measures to ensure its survival.
The affected teams have already been informed and the company is taking steps to ensure that those affected by the layoffs receive the necessary support. Coinbase is also looking at the long-term prospects of the industry and is already planning for 2023.
Overall, the decision to reduce staff was a difficult one, but it is necessary to ensure that Coinbase can survive the crypto winter. The company will continue to monitor the situation and take necessary steps to ensure its survival.