Silvergate Bank received $4.3 billion from the San Francisco-based Federal Home Loan Bank last year, following the collapse of crypto exchange FTX, according to the firm’s Q4, 2022 flings. Silvergate’s business model focuses on providing banking services to crypto exchanges and investors. Around 90% of the bank’s deposits come from crypto. At the end of…
France’s AMF president announces support for mandatory crypto licensing
The head of France’s Financial Markets Authority (AMF) has advocated for a rapid move to stricter regulations, according to a Bloomberg report on Jan. 9. The AMF’s President Marie-Anne Barbat-Layani reportedly wants mandatory licensing rules for crypto companies to be introduced in France before comparable regulations come into effect across Europe at a later date….
Metropolitan Bank to abandon crypto asset related vertical
Metropolitan Bank Holding Corp., the holding company for the New York-based Metropolitan Commercial Bank (MCB), announced on January 9 that it would close its cryptocurrency unit by 2023. Metropolitan Bank Holding Corp. (the “Company”) (NYSE: MCB), the holding company for Metropolitan Commercial Bank, today announced that it will fully exit the crypto-asset related vertical.https://t.co/JrTOs1y5sX —…
ECB calls for crypto regulation, expedited CBDCs deployment
European Central Bank (ECB) Executive Board member Fabio Panetta published a post in the ECB blog emphasizing the need for regulations in the crypto industry. “We can’t afford to leave cryptos unregulated.” Crypto Concerns Panetta described unbacked crypto assets as speculative assets that lack any intrinsic value. Since investors only buy these assets to sell…
Silvergate Capital bank forced to sell assets at loss, fires 40% of staff
Silvergate Capital was forced to sell assets at a loss in order to cover an $8.1 billion bank run. In response to the crisis, Silvergate laid off approximately 200 employees — 40% of its staff — and announced plans to “pare back its businesses,” according to The Wallstreet Journal. Silvergate liquidated debt held on its…
Silvergate denies nepotism before U.S. senators
Silvergate CEO Alan Lane has denied allegations of nepotism before U.S. senators, according to a report from The Wall Street Journal on Dec. 21. Last month, on Nov.7, Silvergate Capital announced two changes to executive positions within the company. Unfortunately, it neglected to mention at that time that Lane’s son-in-law, Tyler Pearson, would be affected…
Silvergate account was at the center of FTX’s collapse, senators say
An account with Silvergate Capital may have played a key role in FTX’s collapse this November, according to a Dec. 20 report from the Wall Street Journal. The newspaper cited three U.S. senators who said that an account at Silvergate “appears to be at the center” of FTX’s collapse. Those senators also said that Silvergate…
New York authority lays out conditions for banks to offer crypto-related services
The New York Department of Financial Services (DFS) has released a guideline mandating banking institutions to seek regulatory permission at least 90 days before offering crypto-related services. The guideline released on Dec. 15 by the DFS Superintendent Adrienne Harris stated that New York-regulated banks must seek approval from the Department before engaging in crypto-related services,…
Bitcoin Group set to acquire German’s oldest Bank for over $15M
Crypto holding company Bitcoin Group has moved to buy one of the world’s oldest banks Bankhaus von der Heydt, for roughly $15 million. Bankhaus von der Heydt was founded in 1754 as a privately-owned bank offering traditional and digital assets banking. It became the first bank in German to offer cryptocurrency trading and custody services…
Signature Bank shrinks crypto-tied deposits by $8-10B
Crypto-friendly Signature Bank (SBNY) announced that it would shrink its deposits tied to crypto assets by $8 – $10 billion. SBNY’s decision indicates that the bank might be distancing itself from the crypto industry. SBNY’s CEO Joe DePaolo commented on the decision and said: “We are not just a crypto bank and we want that…